Japan Approves SBI VC Trade to Launch Stablecoin Services With USDC

Highlights:

• SBI VC Trade is the first in Japan to get a license to handle USDC transactions under new rules.
• The beta launch for USDC trading will be open to select customers within SBI Group.
• Japan is changing laws to make digital assets available for businesses and other investors.

SBI VC Trade has secured authorization from the Kanto Regional Financial Bureau to operate electronically as a payment instrument business operator. With this approval, SBI VC Trade can process transactions through the stablecoin USD Coin (USDC), which Circle issues. SBI VC Trade plans to extend its digital service portfolio by adding additional digital asset features to benefit its users. The company announced that it would start transacting with USDC on March 12.

🇯🇵 Japan’s SBI VC Trade has become the first in the country to complete regulatory registration for processing #USDC transactions! A major step for #crypto adoption in Japan. 🚀 #Blockchain #Fintech #SBI #CryptoNews

— Harmony Algo (@HarmonyAlgo) March 4, 2025

Beta Launch and Expansion Plans for USDC Transactions

SBI VC Trade will first introduce the USDC service in a beta phase where only a limited number of customers will have access. The firm plans to expand the service gradually to more users once initial testing is complete. The company emphasized that stablecoin transactions would allow customers to buy, sell, deposit, and withdraw USDC seamlessly.

SBI VC Trade has partnered with Shinsei Trust Bank to ensure safe handling of the USDC. The stablecoin reserves will be managed via trust security by the bank. Since USDC is tied to the US dollar, SBI VC Trade must therefore hold an equal amount of US dollars in reserve. With this, customers are able to exchange USDC for fiat currency whenever they want to. The company stated that users will see USDC displayed on its trading platform by the time the beta phase launches.

The spot trading pairs supported by SBI VC Trade will include BTC/USDC and ETH/USDC. The platform will allow customers to trade digital assets with USDC for enhanced liquidity. At a later stage, the firm also plans to bring leveraged trading with USDC. The goal of the company is to offer additional trading options and guarantee customers the security and transparency of transactions. The initial phase will help the firm assess demand and refine its services.

Changes in Japan’s Crypto Framework and SBI VC Trade’s Role

Japan’s Financial Services Agency has been working on new policies for digital assets. Last year, the agency approved a reform that allows stablecoins to be backed by short-term government bonds and fixed-term deposits. The new framework further specifies that the amount of bonds and deposits that can back stablecoins should be limited to no more than 50%. The purpose of this policy is to create an equilibrium between stability and flexibility for issuers.

🇯🇵 Japan's New Stablecoin Regulations: Enhancing User Protection and Collateral Flexibility

🔒 The Japanese Financial Services Agency (FSA) has recently approved new regulations for stablecoins, aimed at increasing collateral flexibility and improving user protection during… pic.twitter.com/HJCmpXTSGw

— CryptOpus (@ImCryptOpus) February 21, 2025

The Financial Services Agency recently approved a report by a working group recommending changes to existing laws. The report proposes amending the Trust Business Act and the Payment Services Act. The proposal hopes to ease pressure on businesses that deal with virtual assets. Right now, crypto companies that act as intermediaries in transactions follow the same registration process as full exchange operators. The proposal creates a separate category for the intermediaries in an effort to simplify the approval process.

SBI VC Trade has been making moves in the crypto industry. The company signed an agreement with Circle to develop a business partnership in 2023. SBI Group also purchased Japanese crypto exchange DMM Bitcoin last year following a hack. The company hopes to build a bigger presence in the crypto space while it adjusts to changes in Japan’s financial regulations.