The firm behind the USDC stablecoin, Circle, is looking to launch a stablecoin in Japan under new regulations that went into effect last month.
in a interview With Coindesk Japan, Circle CEO Jeremy Alliare said that Japan would become an extremely large market for them if the adoption of stablecoins in cross-border trade and global trade increases in the future.
Allaire also expressed his interest in seeking different associations in the Asian country.
As previously reported, Circle is currently looking to expand into the Asian market.
Circle CEO Praises Japan’s Stablecoin Bill
Japan put its latest stablecoin law into effect last month, making it one of the first countries to establish a framework for the use of stablecoins abroad.
The CEO of Circle, who visited Japan in June, opined that Japan’s stablecoin bill is the most important thing the government and the Financial Services Agency have done.
Allaire believes that the new stablecoin regulations in Japan that have just come into effect are a crucial first step, as they provide a better framework for governments and stablecoin issuers.
Speaking about the demand for stablecoins in Asia, Allaire said that they believe there is already strong demand and use cases for stablecoins in certain Asian markets. He added:
“Financial centers like Hong Kong and Singapore are already great markets for dollar-backed stablecoins and we have clients in these regions.”
Demand for USDC is also very high in Southeast Asia, the CEO of Circle said.
Will the Japanese Stablecoin be backed by the yen?
Asked if the Japanese stablecoin issued by Circle will be pegged to the yen, the CEO of Circle said that they are still looking into the lawsuit. Allarire added that they believe stablecoins pegged to legal tender are very useful. He continued:
“We expect the world’s major currencies to be available as stablecoins. USD and EUR stablecoins have already been issued. In particular, we believe that currencies that are frequently used for trading and foreign exchange are potentially attractive. Yen-pegged stablecoins will be a new opportunity.”
According to new regulations in Japan, stablecoins must be fully backed by yen or other legal tender and guarantee holders the right to redeem them at face value. The regulations also clarify that only licensed financial institutions, such as licensed banks and trust companies, can issue stablecoins.
Previously, the Japan Financial Services Agency lifted the ban on overseas stablecoins in December last year.
