Circle’s USDC has made history by becoming the first dollar-pegged stablecoin approved for issuance in Japan. This landmark approval was announced by Circle CEO Jeremy Allaire on March 5, 2025, marking a significant development in the Japanese cryptocurrency landscape.
In a post on X (formerly Twitter), Allaire congratulated SBI, the only exchange currently authorized to list and distribute USDC to Japanese investors.
SBI plans to initiate USDC trading for a limited number of users on March 12, with intentions for a broader rollout soon thereafter. This approval positions SBI VC Trade as Japan’s first firm to handle stablecoins like USDC, following Japan’s stablecoin legislation enacted in 2022 that recognizes these tokens as a form of digital money.
The legislation mandates that stablecoins must be linked to the yen or another legal tender and guarantees holders the right to redeem them at face value. Only licensed banks, registered money transfer agents, and trust companies can issue approved stablecoins. The Financial Services Agency (FSA) is expected to introduce regulatory guidelines for stablecoin issuers in the coming months.
On March 4, SBI VC Trade announced its registration as an “Electronic Payment Instruments Business Operator” under Japan’s revised regulatory framework. This new status enables the platform to facilitate stablecoin transactions in compliance with the updated Fund Settlement Act and Banking Act.
SBI VC Trade CEO Tomohiko Kondo confirmed this achievement on X, stating that the company is now the only firm in Japan with a stablecoin license. He emphasized the firm’s commitment to expanding USDC adoption and providing secure, compliant digital payment solutions.
Stablecoins Edo Era in Japan
With its new registration, SBI VC Trade is set to launch a beta version of its USDC services on March 12, allowing a select group of users early access following planned system maintenance. The company aims to gradually expand USDC support while adhering to local regulations, enhancing Japan’s digital asset ecosystem.
SBI Holdings, the parent company of SBI VC Trade, has been actively fortifying its position in the stablecoin sector. In November 2023, the financial giant entered into a memorandum of understanding with Circle to explore new business opportunities in stablecoins.
This latest approval complements SBI’s existing financial licenses, including those for Electronic Payment Instruments, Cryptocurrency Exchange, and Type 1 Financial Instruments Business. SBI VC Trade is poised to play a pivotal role in Japan’s evolving digital finance sector, planning to introduce services that integrate crypto and stablecoin transactions for efficient digital payments.
USDC’s Growing Market Advantage
SBI VC Trade’s initiative comes as USDC gains global regulatory recognition. The stablecoin is currently the only major digital asset compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulations, providing it with a competitive edge over Tether’s USDT in that region.
In recent months, exchanges such as Binance have removed non-compliant stablecoins from their European platforms, leading to a shift in market dominance. Consequently, USDC has experienced increased adoption, with its circulating supply rising by 6% in the past month, reaching an all-time high of over $56 billion.
This approval in Japan marks a significant milestone for USDC and highlights the growing acceptance of stablecoins in the global financial landscape.
Shogun Lin
