Circle’s USD Coin (USDC) has achieved a historic milestone, becoming the first stablecoin officially approved for use in Japan. The announcement, marks a pivotal moment for cryptocurrency adoption in one of Asia’s largest economies. Partnering with SBI Holdings, a financial powerhouse, Circle will launch USDC through SBI VC Trade on March 26, positioning Japan as a key player in the global stablecoin landscape.
The approval stems from Japan’s Financial Services Agency (FSA), which granted SBI VC Trade status as a registered Electronic Payments Provider under the country’s updated stablecoin framework. This framework, enacted in 2023 under the Payment Services Act, lifted a prior ban on foreign-backed stablecoins, allowing licensed entities to handle them. “USDC is the first and only global dollar stablecoin approved for use in Japan,” Circle CEO Jeremy Allaire said on X, crediting over two years of collaboration with Japanese regulators and industry leaders. SBI VC Trade, a subsidiary of SBI Holdings, kicks off with a full rollout on March 26, following a trial phase for select users that began March 12.
USDC, pegged 1:1 to the U.S. dollar, boasts a market cap of $59.7 billion as of March 25, making it the second-largest stablecoin behind Tether’s USDT at $142 billion. Backed by cash and cash-equivalent reserves—held at regulated institutions like BlackRock’s Circle Reserve Fund—USDC offers transparency through monthly attestations, a contrast to Tether’s ongoing audit delays. Japan’s nod signals growing trust in Circle’s model, with Allaire noting it unlocks opportunities in payments, cross-border commerce, and foreign exchange.
SBI Holdings, a conglomerate spanning banking to biotech, brings heft to the partnership. Its crypto arm, SBI VC Trade, launched nearly a decade ago, already supports assets like Bitcoin and XRP. CEO Tomohiko Kondo called it “the first and only company in Japan” to secure a stablecoin license. The rollout extends beyond SBI, with Binance Japan, Bitbank, and BitFlyer slated to list USDC soon, amplifying its reach in a $389.8 billion regional crypto market.
Japan’s regulatory clarity drives this leap. Prime Minister Shigeru Ishiba’s administration has pushed blockchain as a national priority, with the FSA easing stablecoin rules in February 2025 to boost remittances and settlements. “Japan’s regulatory leadership has been out front,” Allaire told CCN.com, contrasting it with the U.S., where stablecoin laws lag despite Trump’s March 6 Bitcoin reserve order. The EU’s MiCA framework, meanwhile, forced Tether’s delisting in 2024, giving Circle a compliance edge.
The implications are broad. USDC’s near-instant, low-cost transactions—settling for under a cent—could reshape Japan’s $8 trillion real estate and financial sectors. A Tokyo-based trader swapping $10,000 via USDC avoids the 3-5% fees and multi-day delays of bank wires. Yet, challenges persist: Japan’s traditional finance systems may resist, and Tether’s liquidity lead—$10 trillion in 2024 transactions—looms large. Circle’s $2.6 billion mint in the last 30 days, shows growth, but it’s a fraction of USDT’s scale.
Will Japan’s embrace spark a stablecoin domino effect? With Circle Japan KK leading local efforts, and SBI’s Yoshitaka Kitao predicting a doubled USDC market cap in three years, the stage is set. For now, USDC’s foothold in Japan tests whether regulated digital dollars can outpace rivals in a global race.
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