Circle will officially introduce its US dollar stablecoin in Japan on March 26, 2025. A local partner, SBI VC Trade, recently received regulatory approval to list the token under Japan’s stablecoin framework.
Circle has set up a dedicated entity named Circle Japan KK to manage local operations. This launch marks a significant step for USDC in Japan and strengthens its market presence.
Regulatory Framework
SBI VC Trade, a subsidiary of SBI Holdings, obtained regulatory clearance earlier this month. The approval makes USDC the first stablecoin to be approved under Japan’s strict regulatory guidelines, the announcement said.
The stablecoin is fully reserved and backed by cash and cash-equivalent assets. USDC can be redeemed one-to-one with US dollars, ensuring transparency and security for users.
Statements from Executives
Jeremy Allaire, Circle’s Co-founder and CEO, expressed honour in bringing USDC to Japanese businesses and consumers.
He stated that the regulatory framework in Japan supports safe digital dollar use and encourages growth in digital finance. Yoshitaka Kitao, CEO of SBI Holdings, noted that their role expands digital asset accessibility in Japan.
He emphasized that this initiative will drive innovation and strengthen the country’s payment systems.
Additional Developments
Circle and Binance announced a strategic partnership to promote USDC on Binance’s trading platform. The collaboration aims to offer improved trading options and innovative promotions for USDC.
Additionally, the partnership will help increase the adoption and liquidity of the digital dollar across global markets.
Cardano founder Charles Hoskinson recently shared his concerns regarding Circle’s operations and their impact on the wider cryptocurrency market. His comments highlight ongoing debates about stablecoin practices within the crypto community.
Crypto Regulations in Japan
Japan’s Financial Services Agency proposed a bill to amend the Payment Services Act. The bill requires crypto exchanges to hold assets domestically to prevent overseas leakages.
Japan’s ruling party also introduced a proposal to create a new crypto regulatory framework. The framework may classify digital assets as a distinct asset class rather than securities.
Circle’s launch of USDC in Japan is a major milestone for digital finance and market expansion. The decision reflects growing institutional confidence and regulatory support for stablecoins in the country.
Regulatory steps and strong partnerships will drive growth in the country’s digital finance ecosystem. This initiative marks a key turning point for stablecoins in Japan and beyond.
Both Circle and SBI Holdings are committed to ensuring a secure trading environment and innovative digital payment solutions.
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