Japan’s SBI VC Trade to roll out USDC support as stablecoin regulations ease

A cryptocurrency subsidiary of the Japanese financial conglomerate SBI is preparing to roll out support for Circle’s USDC stablecoin as local regulators soften stablecoin rules.

On March 4, SBI VC Trade announced the completion of its initial registration for stablecoin transactions, paving the way for specific use cases related to USDC. According to the announcement, after completing full registration, SBI VC Trade expects to be one of the first financial platforms in Japan to offer USDC transactions.

This certification is a huge victory for the company. It will allow it to support USDC transactions by introducing one of the globe’s most popular stablecoins to Japan.

The release went on to state that after receiving final approval, SBI VC Trade will be one of Japan’s first finance platforms to offer cryptocurrency trading based on USDC.

However, the company sees this as the appropriate moment to pump more liquidity into the market, create more stable investment trading volumes, and stimulate deeper demand for digital currencies.

If everything goes according to plan, the service will go live for testing on March 12 and roll out incrementally to a small population. After successful trial runs, the company will make the full rollout a reality as it gets its bearings in Japan’s market.

Jeremy Allaire highlights USDC as Japan’s leading global dollar stablecoin

In the announcement moment, circle founder and CEO Jeremy Allaire characterized USDC as the “sole global dollar stablecoin” overseen in Japan. He would have also liked to witness SBI celebrate as the initial regulated company in Japan that listed and distributed USDC.

He has referred to it as an expansion on a broader scale for Circle in Japan. Allaire’s comments show that Circle oversees Japan as one of the leaders in adopting stablecoin and is set to open up more instruments to supplement the growth of USDC in Japan’s economy.

SBI VC Trade’s success will be the benchmark for Japan’s adoption of digital dollar-denominated instruments on a larger scale.  It will allow companies and traders to participate in the crypto market in a more desirable and compliant environment. At the same time, the country continues to calculate and refine its regulatory strategy against stablecoins.

Japanese regulator backs up stablecoin settlement

SBI’s latest foray into the stablecoin arena came on the heels of a big vote of confidence from the Financial Services Agency (FSA) Commissioner Hideki Ito, who voiced support for stablecoin transactions in Japan.

The SBI stablecoin participation also aligns with SBI’s wider strategy to cement its role in the emerging digital asset ecosystem. SBI VC Trade and its parent company, SBI, have partnered with other major players in the U.S. market in addition to its Circle partnership, including Ripple. 

This collaboration has particularly been seen with cross-border payments. Not long ago, SBI partnered with Ripple to enable blockchain technology for the financial industry, making it quicker and cheaper to transact.

In addition to its Murphy partnership, which has turned its attention to stablecoins, SBI VC Trade offers a wide range of trading services for different cryptocurrencies. Its platform now includes services for several digital assets, including Bitcoin (BTC), Ether (ETH), and the XRP token. 

This variety aligns with SBI’s wider goal of enabling cryptocurrency adoption within Japan while abiding by regulatory rules.

As the Japanese government progressively relaxes restrictions on digital assets, SBI VC Trade’s recent strides reflect mounting institutional demand for stablecoins and blockchain-driven financial products. This transition can facilitate further innovations in Japan’s digital payments, remittances, and financial services.

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