Introduction
Japan is making headway in the world of stablecoins with SBI VC Trade acquiring the country’s first official approval to handle stablecoin transactions including USD Coin (USDC). This significant development paves the way for bolstering the nation’s crypto market stature.
Milestone for Stablecoins in Japan
On March 4, SBI VC Trade pronounced its registration as an “Electronic Payment Instruments Business Operator” under the revamped Japanese regulatory framework. This landmark achievement facilitates the platform to simplify the use of stablecoins, aligning with the amended Japan’s Fund Settlement Act and Banking Act.
SBI VC Trade’s Commitment
Tomohiko Kondo, CEO of SBI VC Trade, confirmed this development and emphasized the company’s commitment to drive USDC adoption and provide secure, compliant digital payment solutions. The firm stands as the only authorized entity in Japan to work with stablecoins.
Upcoming USDC-Related Services
With the new registration, SBI VC Trade anticipates introducing a beta version of its USDC-related services on March 12. The firm plans to offer early access to a limited group of users post-scheduled system maintenance. Their goal is to gradually expand USDC support in compliance with local regulations and aid in the enhancement of Japan’s digital asset landscape.
Previous Undertakings
SBI Holdings, SBI VC Trade’s parent company, has been actively strengthening its position within the stablecoin market. They signed a memorandum of understanding with Circle, the issuer of USDC, in November 2023, to delve into new business opportunities.
Existing Financial Licenses
SBI VC Trade holds several financial licenses including the Electronic Payment Instruments Business (No. 00001), Cryptocurrency Exchange Business (No. 00011), and the Type 1 Financial Instruments Business (No. 3247). They aim to introduce services integrating crypto and stablecoin transactions, ensuring efficient digital payments.
Growing Market Advantage of USDC
The strengthening position of USDC globally is evident with its compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations, while other stablecoins such as Tether’s USDT face regulatory restrictions. Over the past months, significant exchanges including Binance have removed non-compliant stablecoins from their European platforms, leading to a shift in market dominance. Consequently, USDC’s adoption has surged with a 6% rise in its circulating supply over the past month, reaching an all-time high of over $56 billion.
