Circle announced it will launch the USDC stablecoin on the Japan SBI VC Trade cryptocurrency exchange on March 26.
This comes after securing regulatory approval to introduce USDC under the Japan Financial Services Agency’s stablecoin regulatory framework. USDC is the first and only global dollar stablecoin approved for use in the Japanese Market.
Circle will launch the USDC stablecoin in Japan on March 26
The announcement was made three weeks after SBI VC Trade obtained the first regulatory approval in the industry on March 4.
Jeremy Allaire, co-founder and CEO of stablecoin issuer Circle, shared an X post on March 24 stating that it was not the first time they sought regulatory approval.
Two years ago, they were involved in back-and-forth negotiations concerning regulatory approval with regulators, banking partners, and industry players.
Allaire added that the development unlocks tremendous opportunities in trading digital assets and, more broadly, in payments, cross-border finance and commerce, and FX.
Circle plans to list USDC on bitbank, bitFlyer, and Binance Japan soon.
Bitbank and bitFlyer are two of Japan’s biggest cryptocurrency exchanges. They have handled over $25 million over the last 24 hours, and their websites have received over 1.85 million visits in the past month.
SBI Holdings CEO and president Yoshitaka Kitao claimed that the USDC launch would greatly benefit Japan by increasing cryptocurrency innovation and improving financial accessibility in the country.
According to Kitao, these benefits align with their broader vision for the future of payments and blockchain-based finance in Japan.
Notably, on February 24, USDC and Circle’s euro-backed EURC (EURC) stablecoins were acknowledged as the first stablecoins under the Dubai Financial Services Authority’s new regulation.
As a result, companies operating in Dubai International Financial Centre use the two stablecoins in digital asset applications such as payment, treasury management and services.
Japan approves USDC as the first stablecoin after two years of regulatory negotiation
After the regulatory approval on March 4, CEO Jeremy Allaire congratulated crypto exchange SBI for becoming the only firm approved to list and distribute USDC to Japanese investors.
SBI stated in a post that it intended to launch USDC trading for a selected group of users on March 12 and launch a full-scale offering as soon as possible.
USDC’s market capitalization is $59.43 billion. The quantity of tokens in wallets fluctuates because USDC is designed to maintain a 1:1 peg with US dollars.
Japan approved a stablecoin bill in June 2022, recognizing the tokens as digital currency. The law, which took effect in 2023, mandates that stablecoins be tied to the yen or another valid currency and that holders be able to redeem them at face value.
The FSA reported that regulations governing stablecoin issuers will be introduced in the upcoming months. It further specified that only licensed banks, registered money transfer agents, and trust companies could issue approved stablecoins.
The Japan USDC approval comes shortly after Coinbase CEO Brian Armstrong emphasized the company’s goal of matching the success of Tether (USDT), USDC’s main competitor.
Meanwhile, USDT faced a setback after Binance announced plans to delist the stablecoin for EU customers by the end of the month.
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