Tokyo-based financial company SBI Holdings has signed a memorandum of understanding with Circle Internet Financial, the issuer of USDC stablecoins, to circulate USDC in Japan.

The two companies are also working to set up a banking partnership and push Circle’s Web3 services in the country.

SBI VC Trade, a crypto subsidiary of the Japanese firm, will seek the necessary approval by authorities. The tie-up comes after Japan updated it payment services act to encourage the use of stablecoins.