Crypto blogger Colin Wu has reported that Japanese financial giant SBI Holdings (also major partner of Ripple Labs in Japan) announced its plans to begin cooperating with the world’s second-largest company by market capitalization Saudi Aramco.
Aramco is also known as the Saudi Arabian Oil Group. Their plan is to set up a new company and promote digital assets and startups dealing with them in Saudi Arabia. In his tweet, Wu cited an article by xtech.nikkei.
Global giants team up to extend crypto startups from Japan to Saudi Arabia
Recently, SBI made an announcement about signing an agreement with Saudi Aramco to begin collaborating in the near future. They intend to build factories for producing semiconductors in Saudi Arabia and Japan.
Another subject of their agreement is digital assets – they plan to invest in the sphere of digital assets, as well as discover and provide support to Japanese crypto startups which would like to expand their business activities into Saudi Arabia through “SBI Middle East”.
SBI Group has been establishing new partnerships with companies in the Middle East. It is already working in collaboration with Taiwan-based Power Crystal Manufacturing in the field of semiconductor production.
SBI partners with Circle to utilize USDC
As covered by U.Today earlier, SBI also inked a strategic partnership with Circle, the issuer of USDC dollar-pegged stablecoin, the second largest by market capitalization value in the cryptocurrency market.
The goal of this partnership is to modernize the financial landscape in the country of the rising sun and boost the utility of USDC in Asia overall.
The decision to penetrate the Japanese market was made after the government made a revision of the Payment Services Act in June this year and set firm regulatory rules for stablecoins in Japan.
Japan intends to gradually get its economy on Web3 tracks and so with the revision of the act they intend to stimulate both creation and circulation of stablecoins in the country.
USDC is fully backed by US dollars, which are stored on separate bank accounts in order to avoid repeating what happened to FTX in November last year.
SBI and Circle have signed a memo to ensure the start of their collaboration in the future.