TLDR
- Circle’s USDC stablecoin to launch on SBI VC Trade in Japan on March 26, 2025
- First stablecoin approved under Japan’s new regulatory framework
- USDC will later be listed on Binance Japan, bitbank, and bitFlyer
- Partnership between Circle and SBI Holdings began in 2023
- The launch could open opportunities in payments, cross-border finance, and commerce in Japan
Circle’s USDC stablecoin has received regulatory approval to operate in Japan. The launch represents a major milestone in Japan’s digital asset market and creates new opportunities for stablecoin use in the country’s financial ecosystem.
Launch Details
USDC will officially launch on the SBI VC Trade crypto exchange on March 26. This comes after SBI VC Trade secured the first-ever regulatory approval from the Japan Financial Services Agency on March 4 to list the US dollar stablecoin.
The approval is the result of two years of discussions with regulators, banking partners, and industry players. Circle created a Japanese entity, Circle Japan KK, to support the stablecoin’s operations in the country.
SBI VC Trade is a subsidiary of SBI Holdings, a major Japanese financial conglomerate. The exchange will be the first to offer USDC trading in Japan under the country’s stablecoin regulatory framework.
Circle is also planning to list USDC on other major Japanese exchanges. These include Binance Japan, bitbank, and bitFlyer in the near future.
Market Impact
Japan’s bitbank and bitFlyer are among the country’s largest crypto exchanges. They have processed more than $25 million each over the last day with over 1.85 million visits to their websites in the last month.
USDC remains the second largest stablecoin globally by market cap. It has a total value of $59.7 billion, behind only Tether’s USDT at $143.8 billion, according to CoinGecko data.
Circle co-founder and CEO Jeremy Allaire shared his thoughts on the launch. He stated that it “unlocks tremendous opportunities not just in trading digital assets, but more broadly in payments, cross border finance and commerce, FX.”
BREAKING NEWS: Circle becomes the first and only stablecoin to be approved for use in Japanese markets, with Circle launching new operations, a strategic JV with SBI Holdings, and imminent launch of USDC by SBI VC Trade, with other major exchanges to follow.
We have spent 2+…
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) March 24, 2025
SBI Holdings CEO and president Yoshitaka Kitao also commented on the USDC launch. He said it would enhance financial accessibility and drive crypto innovation in Japan’s evolving digital economy.
Broader Applications
The approval builds on a partnership between Circle and SBI Holdings that began in 2023. This collaboration combines USDC distribution with banking and Web3 technology for the Japanese market.
USDC is fully reserved and backed 100% by cash and cash-equivalent assets. The reserves are held at regulated financial institutions that publish third-party monthly attestations, according to Circle.
The launch goes beyond just introducing a new crypto product in Japan. Jay Jo, a senior research analyst at Tiger Research, told Decrypt that Japanese companies could “offer custody services and develop various stablecoin-based businesses.”
While Japan “still prohibits trust-based yen stablecoins,” future regulatory changes could reshape the country’s crypto and digital asset sector. This opens the door for further development in the space.
The continued weakness of the Japanese yen could create interesting market dynamics. Given the tensions between the yen and the US dollar, Japanese investors might turn to USDC as a hedge against currency depreciation.
Easier access to dollar-denominated assets could lead to faster outflows from traditional yen investments. This is especially true if interest rate gaps between the US and Japan remain wide.
This approval comes after USDC’s recent recognition in other regions. In February, USDC and Circle’s euro-backed EURC stablecoin were recognized as the first stablecoins under the Dubai Financial Services Authority’s new regime.
The Dubai recognition allows companies in the Dubai International Financial Centre to use these stablecoins. They can be used in various digital asset applications, including payments, treasury management, and services.
The launch of USDC in Japan marks a major step forward for stablecoins in Asian markets. It shows growing acceptance of digital dollar assets in traditional financial systems.
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