Japan has adopted a forward-thinking and regulatory approach to the emerging stablecoin market. The country has introduced a specific regulatory framework for “Electronic Payment Instruments Services” (EPIS) that handle stablecoins. This framework emphasizes adherence to the Payment Services Act (PSA), which requires registration for EPIS operations. These regulations aim to ensure the secure and responsible integration of stablecoins into Japan’s financial system.
Under these new regulations, Tokyo-based Coincheck Inc., led by President Satoshi Hasuo, has added USDC to its offerings, showcasing its dedication to compliance and innovation. Circle Internet Financial, a fintech company from the U.S. led by Co-founder and CEO Jeremy Allaire, has announced their partnership to expand the presence of USD Coin (USDC) in the Japanese market.
Strategic Growth of USDC in the Japanese Market
Coincheck’s plan to incorporate USDC into its product lineup depends on its successful accreditation as an EPIS under the Payment Services Act of Japan. Since its establishment in 2014, Coincheck has expanded its user base to over 1.91 million verified accounts by January 2024, establishing itself as a premier cryptocurrency exchange in Japan. Coincheck aims to seamlessly integrate USDC, enhancing user engagement and facilitating the stablecoin’s adoption throughout the country.
This collaboration signifies a crucial step forward in Coincheck’s ambition to broaden its product range while maintaining high standards of user interface and user experience. Jeremy Allaire from Circle expressed his excitement about setting the stage for the future of digital finance in Japan through this initiative. Similarly, Oki Matsumoto, Managing Director & Chairman of Coincheck and Monex Group, is keen on positioning USDC as the leading global stablecoin in the Japanese market.
Both Hasuo and Allaire have expressed their optimism regarding the opportunities this partnership presents.
Circle maintains a rigorous distinction between its operational finances and the USDC reserves, which are safely managed by leading financial institutions. The impact of USDC is highlighted by its support for over $12 trillion in cumulative on-chain transactions. This vast on-chain ecosystem underscores its importance as a digital foundation for storing value, assessing worth, and pioneering payment solutions.