Circle secures Japan’s first stablecoin approval

Circle Internet Financial has received Japan’s first regulatory approval for a stablecoin, teaming up with SBI Holdings to launch USDC (CRYPTO:USDC) in the country.

This milestone, announced on March 25, makes USDC the first global dollar stablecoin cleared under Japan’s updated regulatory framework, with trading set to begin on SBI VC Trade on March 26.

Circle CEO Jeremy Allaire highlighted the significance of the achievement, noting that the company had spent over two years engaging with Japan’s regulators, industry players, and banking partners to make USDC available in the Japanese market.

The approval opens doors for opportunities in payments, cross-border finance, and commerce.

SBI VC Trade, a subsidiary of SBI Holdings, received official approval from Japan’s Financial Services Agency (FSA) on March 4. Major exchanges, including Binance Japan, Bitbank, and Bitflyer, will also list USDC, expanding its reach.

The partnership builds on a 2023 collaboration between Circle and SBI to integrate USDC into digital banking and Web3 services.

Allaire praised Japan’s leadership in blockchain and Web3 adoption, noting that Japan’s regulatory framework has been ahead of the curve in providing clear rules for stablecoin use.

SBI Holdings CEO Yoshitaka Kitao described the initiative as a step toward “financial innovation” and better access to digital assets.

USDC’s approval aligns with Japan’s 2023 stablecoin regulations, which mandate that reserves must be held in cash or cash equivalents.

Circle’s stablecoin remains fully backed and redeemable 1:1 for U.S. dollars, with third-party audits ensuring transparency.

While USDC’s approval marks a breakthrough, analysts note challenges in replacing traditional payment systems.

Circle’s focus on business tools, such as digital payments and treasury services, may drive institutional adoption, but consumer uptake remains a critical factor.