Circle Will Officially Introduce Its USDC Stablecoin in Japan Through SBI Group on March 26

SBI VC Trade obtained regulatory clearance for stablecoin management that enabled this business move. As a result, USDC becomes the first global dollar stablecoin to secure legal access to the Japanese market.

Circle will officially launch its USDC stablecoin in Japan on March 26 through SBI Group, according to a report by TokenInsight.

SBI VC Trade has reportedly received regulatory approval for managing stablecoins, paving the way for this business move.

As a result, USDC will become the first global dollar-pegged stablecoin to gain legal access to the Japanese market.

This launch marks a major development for Circle, which has been preparing for Japan’s regulatory landscape for more than two years.

Through its partnership with SBI Holdings (6473.TO), Circle aims to expand the usage of USDC in digital asset trading and financial services.

This initiative also aligns with Japan’s broader efforts to modernize financial systems and boost innovation.

The introductory phase of this launch will take place on the trading platform of SBI VC Trade, which falls under SBI Group.

Afterwards, USDC will be listed on other major cryptocurrency exchanges in Japan, including Binance Japan, bitbank, and bitFlyer.

A Circle spokesperson confirmed that selected users began testing the coin on March 12 as part of a controlled trial phase.

First Stablecoin Approved For Use In Japanese Markets

The Japanese market will allow only USDC to operate as their global dollar-backed stablecoin. The Financial Services Agency (FSA) approved several stablecoins following changes that let licensed firms list their tokens for use. But SBI VC Trade is the first exchange to meet the requirements of the newly established framework.

The launch will unlock significant opportunities in finance, payments, and cross-border commerce, Circle’s CEO said.

As part of its initiative, USDC presents benefits for streamlined foreign exchange operations as it bolstered both payment transfers and payment processing. The alliance seeks to establish quick and effective digital dollar monetary liquidity services throughout the region.

According to data from CoinGecko, USDC is currently the second-largest stablecoin by market cap, with a market value of $59.7 billion at press time. It edges out Tether (USDT) thanks to its focus on transparency and regulatory compliance.

Following its entry into Japan, USDC will expand its footprint further into Asia’s regulated market systems.

Circle & SBI Holdings Target Web3 And Financial Innovation

Circle and SBI Holdings announced their partnership in December 2021 to introduce USDC to the Japanese market.

The two companies said they will also collaborate on broader initiatives to support the growth of Web3 infrastructure in Japan.

Together, they aim to foster greater access to digital assets, advise on relevant regulations, and accelerate the adoption of blockchain technology in Japan.

This move is seen as crucial for transforming Japan’s finance sector into a more modern and competitive force.

The head of SBI stated that the introduction of USDC would facilitate better access to financial services and propel the speed of crypto service development.

The integration enables Japan to achieve digital transformation leadership by following regulatory standards for stablecoins in traditional financial applications.

Stablecoins received additional regulatory freedoms from Japanese authorities because they support the advancement of financial technology. The FSA adopted new policies during February that foster stablecoin advancement. This movement indicates that Japan endeavors to develop safer, more modern financial instruments.

Japan opened its borders for foreign stablecoins in 2023, enabling SBI and other firms to expand their crypto services. Thanks to this transformation in regulatory policies, the market gained access to regulated digital currencies.

Since its implementation, the FSA has introduced additional measures to support more financial innovations.

According to Commissioner Hideki, stablecoins present an opportunity for remittance systems, as they serve as safe alternatives to existing settlement processes. The updates provide established guidelines for companies who want to maintain legal compliance. Japanese digital finance will likely witness an increase in worldwide enterprises entering its market.