Circle, the company behind the USDC stablecoin, is aggressively expanding its presence in Japan by partnering with SBI VC Trade to bring USDC to domestic exchanges. This is the first time a stablecoin has been licensed under Japan's new regulatory framework, opening up significant opportunities for the digital asset market here.
SBI VC Trade – The Main Distributor of USDC in Japan
SBI VC Trade, a subsidiary of SBI Holdings, has received regulatory approval and is preparing to launch trading $USDC on March 26, 2025. Alongside this, other major exchanges such as Binance Japan, Bitbank, and BitFlyer are also planning to list and distribute USDC.
Circle has established an entity in Japan, Circle Japan KK, to support local operations. According to Circle's CEO, Jeremy Allaire, this move will create many opportunities for the Japanese digital asset market, enhancing payments, cross-border finance, trade, and foreign exchange (FX) markets.
Strategic Partnership Circle – SBI Holdings Since 2023
The partnership between Circle and SBI Holdings began in 2023, when the two parties combined the distribution of USDC with banking technology and Web3 to serve the Japanese market. USDC is a stablecoin backed 100% by cash and cash equivalents, with reserves stored at financial institutions audited independently on a monthly basis.
This event is not just about launching a new crypto, but also paves the way for many other financial services based on stablecoins. According to Jay Jo, an analyst at Tiger Research, Japanese companies could offer stablecoin custody services and develop new business models as USDC is legalized.
Can USDC Put Pressure on the Japanese Yen?
While the launch of USDC brings many benefits, it may also impact the Japanese financial market, especially in the context of the Japanese yen (JPY) weakening against the USD.
Expert Jay Jo states:
"If the yen continues to weaken, Japanese investors may shift assets to USDC to preserve value, thus increasing selling pressure on the JPY."
Additionally, the interest rate gap between USD and JPY is widening, which could encourage a flow of money away from traditional yen-denominated assets towards dollar-denominated assets like USDC.
Conclusion – Is Japan Opening Up to Stablecoins?
Although Japan currently prohibits stablecoins issued based on trust funds in yen, the approval for USDC indicates that regulations may continue to change in the future. If the Japanese government expands regulations to allow more types of stablecoins, the Japanese cryptocurrency market could grow even stronger.
With backing from #SBIHoldings and major exchanges, USDC has the potential to become the most popular stablecoin in Japan, while also playing an important role in the country's digital economy.
