Circle is set to introduce its USDC stablecoin to Japan on March 26, beginning with SBI VC Trade. This launch follows more than two years of discussions with regulators and partnerships with local financial institutions.
Circle becomes the first stablecoin issuer to receive official approval in Japan, opening the door for broader stablecoin adoption across exchanges and payment systems in the country.
Circle Gains Approval After Two Years of Preparation
Japan has always taken a cautious approach to digital assets, particularly stablecoins. In June 2023, the government introduced new rules requiring issuers and related services to register under the Funds Settlement Act and the Banking Act.
These changes were aimed at tightening oversight, with a clear focus on preventing misuse and protecting users. Against this backdrop, Circle spent over two years working closely with regulators and financial partners in Japan to bring USDC into full compliance with local laws.
This effort has now paid off. Circle has become the first company allowed to circulate a stablecoin under Japan’s revised legal framework.
The approval means that USDC will be available for trading on SBI VC Trade starting March 26. SBI VC Trade is the crypto arm of SBI Holdings, one of the country’s most established financial institutions.
Circle is launching USDC through its local entity, Circle Japan KK, which was set up specifically to meet Japan’s regulatory requirements.
Beyond SBI VC Trade, Circle also plans to bring USDC to other Japanese exchanges including Binance Japan, bitbank and bitFlyer. The listing on multiple platforms shows growing interest in stablecoins with full transparency and strong reserves.
Japan’s trust in Circle likely stems from the company’s clear structure and its long-standing efforts to operate within legal boundaries. This is not just a business expansion but a shift in how Japan views stablecoins as part of its broader financial landscape.
A Broader Vision for USDC in Japan’s Financial System
While the first step is exchange listing, Circle has a wider goal in mind. CEO Jeremy Allaire stated that USDC’s role in Japan could go far beyond crypto trading.
With its regulatory status confirmed, USDC can now be explored for use in payments, international transfers, and even currency exchange. Circle’s partnership with SBI Holdings will be essential in this process, combining technical capabilities with local market knowledge.
Japan has been gradually moving toward digital finance, and stablecoins are becoming part of that shift. Circle’s presence may encourage banks and fintech firms to use USDC in real business cases, such as cross-border payments or settlements between companies.
This is especially relevant in Japan where the population is comfortable with technology, but financial innovation still moves at a deliberate pace. A trusted stablecoin like USDC may offer a bridge between traditional finance and new digital services.
Circle’s local approach shows an understanding of Japan’s regulatory and cultural environment. Rather than entering as a foreign platform, it formed Circle Japan KK and worked through formal channels.
This signals a long-term plan to be part of the Japanese financial system, not just an attempt to gain market share.
Such an approach may also make it easier for Japanese businesses and government bodies to consider stablecoins for future initiatives, especially as the country continues to explore its digital currency options.
Making USDC available on local exchanges means it will become more accessible to Japanese users, both individual and institutional.
With clear legal status and the backing of a recognised issuer, USDC could be seen as a reliable digital asset in a market that values regulation and clarity.
As more exchanges join in and more institutions adopt USDC for financial services, Japan may become a model for how stablecoins can operate within a strict but clear regulatory framework.
Conclusion
Circle’s approval to launch USDC in Japan through SBI VC Trade is a significant development for both the company and the country’s digital asset sector. It reflects the result of careful preparation and cooperation with local authorities and partners.
With exchange listings beginning this week and more expected soon, USDC is likely to play a growing role in how Japan approaches regulated digital finance. Circle’s entry could mark the start of a more structured and open path for stablecoins in Japan.