TLDR
- USDC stablecoin received regulatory approval in Japan, becoming the first global dollar stablecoin approved under Japan’s stablecoin regulatory framework
- SBI VC Trade will launch USDC trading on March 26, 2025, with Binance Japan, bitbank, and bitFlyer planning to list it soon
- Circle established a Japanese entity (Circle Japan KK) to support local operations and formed a joint venture with SBI Holdings
- The approval came after two years of negotiations with regulators, banking partners, and industry players
- USDC remains the second-largest stablecoin by market cap at $59.7 billion, behind Tether’s USDT at $143.8 billion
After a two-year process of regulatory negotiations, Circle’s USD Coin (USDC) has received approval to launch in Japan. This makes USDC the first global dollar stablecoin approved under Japan’s stablecoin regulatory framework.
The stablecoin will debut on SBI VC Trade crypto exchange on March 26. This follows the March 4 regulatory approval from the Japan Financial Services Agency.
Circle has established a Japanese entity called Circle Japan KK. This local presence will support USDC operations throughout the country.
The launch is part of a joint venture between Circle and SBI Holdings, a major Japanese financial conglomerate. SBI VC Trade is a cryptocurrency exchange operating as a subsidiary of SBI Holdings.
More exchanges plan to offer USDC soon. Binance Japan, bitbank, and bitFlyer have committed to listing and distributing the stablecoin in the near future.
Bitbank and bitFlyer are among Japan’s largest crypto exchanges. They process more than $25 million each daily and receive over 1.85 million website visits monthly.
Jeremy Allaire, Circle’s co-founder and CEO, highlighted the breakthrough on social media. He noted that the approval came after “two years of back-and-forth negotiations with regulators, banking partners and industry players.”
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
Allaire believes this development will create many new opportunities. These include improvements in “payments, cross border finance and commerce, FX” and other areas.
SBI Holdings’ CEO Yoshitaka Kitao also praised the launch. He stated it would “enhance financial accessibility and drive crypto innovation in Japan’s evolving digital economy.”
Kitao added that this aligns with SBI’s broader vision. The company sees USDC as part of “the future of payments and blockchain-based finance in Japan.”
100% Backed by Cash & Cash-Equivalents
The USDC stablecoin is fully reserved and backed 100% by cash and cash-equivalent assets. These reserves are held at regulated financial institutions that publish monthly attestations from third parties.
This level of transparency aims to build trust in the Japanese market. It shows USDC as a secure digital dollar option for businesses and consumers.
Jay Jo, a senior research analyst at Tiger Research, offered additional insights. Jo told Decrypt that beyond just trading, Japanese companies could “offer custody services and develop various stablecoin-based businesses.”
However, Jo noted that Japan “still prohibits trust-based yen stablecoins.” Future regulatory changes might further shape the country’s crypto sector.
The ongoing weakness of the Japanese yen could create interesting market dynamics. Jo suggested that if the yen continues to show weakness, “Japanese investors might shift to USDC” as a hedge.
This could potentially “increase selling pressure on JPY,” especially if interest rate differences between Japan and the US remain wide. Easier access to dollar-denominated assets could accelerate outflows from traditional yen investments.
USDC currently ranks as the second-largest stablecoin by market cap. It has a market cap of $59.7 billion, trailing only Tether’s USDT at $143.8 billion, according to CoinGecko data.
This Japan launch follows another regulatory breakthrough for Circle. In February, both USDC and Circle’s euro-backed EURC stablecoin received recognition under the Dubai Financial Services Authority’s new regime.
This Dubai recognition allows companies in the Dubai International Financial Centre to use these stablecoins. They can be integrated into various digital asset applications, including payments and treasury management.
