SBI VC Trade Becomes First Company in Japan to Receive Approval to Handle Stablecoins

SBI VC Trade has become Japan's first company to receive official approval to handle stablecoins like USD Coin (USDC), marking a significant step

SBI VC Trade has become the first company in Japan to receive official approval to handle stablecoins, specifically mentioning USD Coin (USDC), a significant step for the country's crypto market.

On March 4, the firm announced its registration as an “Electronic Payment Instruments Business Operator” in accordance with Japan’s updated regulatory framework. This milestone allows the platform to handle stablecoins further to the revised Fund Settlement Act and Banking Act.

SBI VC Trade CEO Tomohiko Kondo confirmed the development on X, adding that his firm is currently the only one in Japan with a stablecoin license.

“We are the only company in Japan to have registered for the Electronic Payment Instruments Business in relation to stablecoins,” Kondo stated.

He highlighted the company's commitment to expanding USDC adoption and providing users with secure and compliant digital payment solutions.

New era for stablecoins in Japan

With the new registration, SBI VC Trade plans to introduce a beta version of its USDC-related services on March 12.

According to the company, a limited group of users will gain early access after scheduled system maintenance. The company aims to expand USDC support in phases, ensuring compliance with local regulations.

SBI Holdings, the parent company of SBI VC Trade, has been actively strengthening its position in the stablecoin market. In November 2023, the financial giant signed a memorandum of understanding with Circle, the issuer of USDC, to explore new business opportunities.

This latest approval adds to the firm’s existing financial licenses, which include the Electronic Payment Instruments Business (No. 00001), Cryptocurrency Exchange Business (No. 00011), and the Type 1 Financial Instruments Business (No. 3247).

SBI VC Trade stands at the forefront of Japan’s evolving digital finance sector. The firm plans to introduce new services that will integrate crypto and stablecoin transactions, facilitating seamless and efficient digital payments.

USDC’s growing market advantage

SBI VC Trade’s move comes as USDC is gaining global regulatory recognition.

The digital asset is currently the only major stablecoin that is compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulations, giving it a competitive edge over Tether’s USDT in the region.

Over the past months, major exchanges like Binance have been removing non-compliant stablecoins from their European platforms as they prepare for MiCA enforcement.

As a result, USDC has seen increased adoption, with its circulating supply up by 6% in the past month to an all-time high of over $56 billion.