TLDR
- Circle's USDC stablecoin is making its official entry onto Japan's SBI VC Trade exchange on March 26, 2025.
- USDC achieves the milestone of being the first stablecoin officially sanctioned under Japan’s crypto regulations.
- Binance Japan, bitbank, and bitFlyer are gearing up to introduce USDC on their platforms soon.
- To enhance its services, Circle has formed Circle Japan KK, dedicated to facilitating its business dealings.
- This launch is a result of a collaboration between Circle and SBI Holdings, initiated in 2023.
Circle Internet Financial has broken the news that its USD Coin (USDC) will soon be live. officially launch in Japan on March 26, 2025. This development unfolds as SBI VC Trade, with backing from the Japanese financial powerhouse SBI Holdings, gains Japan Financial Services Agency's (FSA) nod to list USDC in accordance with the country's stablecoin rules.
This is a pivotal chapter for Japan's crypto industry, as USDC leads as the first international dollar stablecoin sanctioned for usage after extensive discussions with the regulators.
SBI VC Trade is pioneering this initiative, but wider adoption is on the horizon. Circle has confirmed that Binance Japan, bitbank, and bitFlyer are also on the verge of offering USDC on their exchanges.
These significant entities are integral to Japan's cryptocurrency scene. With bitbank and bitFlyer as key players, they collectively handle transactions exceeding $25 million daily and draw in over 1.85 million visitors monthly to their sites.
Circle is boosting its local engagement by creating Circle Japan KK to closely partner with SBI Holdings in a venture that was publicized in 2023.
Jeremy Allaire, Circle's co-founder and CEO, expressed his excitement via social media, indicating that this progress sets the stage for major possibilities not just in digital asset trading, but also in broader financial domains like payments, international finance, and currency exchanges.
BREAKING ALERT: Circle makes history as both the pioneer and solitary stablecoin to obtain approval for the Japanese market, thanks to its new ventures, a strategic collaboration with SBI Holdings, and the upcoming roll-out of USDC by SBI VC Trade, alongside plans from other leading exchanges.
We have spent 2+...
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) March 24, 2025
The approval wasn't secured overnight. It required a patient two-year journey of negotiations with regulatory bodies, banking allies, and industry stakeholders.
Bridging Digital Dollars to Japan
Yoshitaka Kitao, the CEO and President of SBI Holdings, shared his perspective on the launch, acknowledging it as a pivotal enabler of finance accessibility and a catalyst for cryptocurrency innovation within Japan’s growing digital ecosystem.
This aligns seamlessly with SBI's expansive vision for using blockchain in finance across Japan. The strategic play focuses on integrating USDC with banking and next-gen technology for the local market.
USDC remains a formidable contender as the second-largest stablecoin in the market, holding a steady market cap of $59.7 billion, trailing Tether’s USDT which stands at $143.8 billion.
Launching USDC in Japan could potentially ripple through the market. According to Jay Jo, a senior research analyst at Tiger Research, beyond the trading scene, Japanese companies could leverage USDC for services like custody and develop diverse business models centered around stablecoins.
This launch coincides with intriguing shifts in Japan's monetary position. As the yen consistently falters against the dollar, unique market conditions emerge.
Should the yen's value continue its decline, Japanese investors might see USDC as a viable hedge, which could subsequently apply selling pressure on JPY, as Jo predicts.
Ready access to assets like these denominated in dollars might sway traditional yen investments. The trend could gain momentum, especially if interest rate gaps persist.
USDC is completely backed by reserves of cash and cash-equivalent assets. These reserves are carefully managed by regulated financial bodies who provide third-party verified monthly attestations, ensuring full transparency.
Circle recently scored another regulatory victory. In February, both USDC and Circle’s euro-backed EURC stablecoin obtained recognition under Dubai Financial Services Authority's revamped policy.
Such recognition permits entities within Dubai’s International Financial Centre to adopt these stablecoins for functions like payments, treasury operations, and various financial engagements.
Circle isn’t stopping there. The company broadened its financial portfolio by acquiring Hashnote in January 2025, the issuer of USYC, known as the 'largest tokenized money market fund on a global scale'.
USYC relies on U.S. Treasury debt and reverse repurchase agreements for backing, totaling assets worth over $1.25 billion, which reinforces Circle's position within the real-world asset tokenization arena.
