Circle to issue a stablecoin in Japan under the new stablecoins law

July 06, 2023 05:40 PM AEST | By Invezz

Circle to issue a stablecoin in Japan under the new stablecoins law — Image source: Invezz

Circle is interested in partnerships in Japan

Allaire who visited Japan last month also said that Circle is interested in inking partnerships in Japan after the revised Payment Services Act that endorses stablecoins backed by legal tender as an “electronic payment method” and allows their issuance. The Financial Services Agency lifted the ban on overseas stablecoins in December 2022.

Nevertheless, stablecoin issuers like Circle will have to put up with the tough rules stipulated in the revised act. For instance, the issued stablecoins must be pegged to the Japanese Yen or other legal tenders and give holders the right to redeem them at face value.

Also, only licensed financial institutions like registered money transfer agents, trust companies, and licensed banks will be able to issue stablecoins.

A number of financial institutions in Japan have announced their aspirations of issuing stablecoins. An example is Mitsubishi UFJ Trust and Banking Corporation, which recently announced it plans to launch a stablecoin platform called Progmat.

Circle, which recently obtained a Major Payment Institution (MPI) license in Singapore to offer digital payment services, cross-border money transfer services, and domestic money transfer services in Singapore, will now seek to make its presence felt in Japan.

The post Circle to issue a stablecoin in Japan under the new stablecoins law appeared first on Invezz.

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