Coincheck and Circle Team Up: Is USDC Making Its First Appearance in Japan?

Circle Partners with Coincheck for USDC Listing in Japan

Circle, USDC’s issuer, has struck a partnership deal with Coincheck, one of Japan’s biggest crypto exchanges – with a view to securing the stablecoin’s first listing in the nation.

Per a Coincheck press release, the Japanese firm said that it had taken “steps toward handling USDC.”

Circle’s Expansion in Japan

Circle claimed that Coincheck was “planning to expand access to” its USD-pegged coin. The Japanese firm is run by Monex Group, a major securities firm that in December last year bought a majority stake in the 3iQ platform.

Regulatory Obstacles and Market Potential

However, regulatory obstacles still stand in the token’s way. Japanese crypto exchanges have yet to list any major USD-backed coins. Regardless, fiat-pegged coins like USDC and USDT enjoy considerable popularity throughout Asia. To list a coin, exchanges must obtain “Electronic Payment Instrument Services” registration from regulators under the terms of the Japanese Payment Services Act.

Relaxed Crypto Regulation in Japan

But in recent months, Japanese regulators appear to have relaxed their stance on crypto regulation. Exchanges have added an increasing number of altcoins to their platforms. The government has also backed Japanese firms in their own stablecoin bids.

Coincheck’s Perspective

A Coincheck official said that the platform “recognizes that domestic crypto asset users have high expectations for the handling of stablecoins.” The company added: “We expect stablecoins to be used as a settlement currency in the purchase and sale of cryptoassets and NFTs. This will likely lead to an increase in the trading volume of NFTs.”

Government Support and Industry Growth

Prime Minister Fumio Kishida and his government have previously identified Japan’s NFT sector as a growth engine for Japan. The government has also unveiled plans to relax rules surrounding the way VC firms can invest in crypto companies.

CEO Statements

Dai Matsumoto, the CEO of Coincheck, said: “We are excited to bring USDC, the global standard for stablecoin tokens, to Japan. We look forward to working with Jeremy [Allaire, the Co-founder and CEO of Circle] and the Circle team. Together, we plan to further develop Japan’s crypto market and blockchain ecosystem.” Allaire said that Circle’s partnership with Coincheck would be “the foundation for building USDC’s stability and credibility in the Japanese market.”