USDC will be the first stablecoin authorised in Japan. It represents a partnership between Circle Internet Group and SBI Holdings, enabling exchanges such as Binance Japan and bitFlyer to offer the stablecoin to their clients.
Japan has been a leader in crypto adoption and web3 blockchains, something that Circle has understood for some time, aiming to integrate USDC into the Japanese ecosystem, including payment systems and finance. Redeemable U.S. dollars fully back USDC and meet regulation standards, making it an appropriate token for the Japanese market. SBI CEO further mentions the potential for Japanese innovation, including greater accessibility for financial tools.
USDC, under the direction of Circle, is the first global stablecoin to gain regulatory approval in a country. The feat has taken multiple years for Circle to gain entry into the Japanese financial market. Jeremy Allaire, from Circle, commented that the process took a lot of effort to finalise all of the requirements.
Circle Japan KK, a subsidiary of Circle, will offer USDC to Japanese businesses and consumers. SBI VC Trade, a crypto exchange, gained approval from the Japan Financial Services Agency to list USDC under the Japanese regulatory framework.
“Japan”, wrote Jeremy Allaire, Circle co-founder, “has long been at the forefront of the adoption of Web3 and blockchain technology, and Japan’s regulatory leadership has similarly been out in front on clear rules for the use of stablecoins in the Japanese financial system. We are honoured to bring USDC to businesses and consumers in the market, and with Circle Japan KK and the strong support of SBI Holdings and leading exchanges, USDC is positioned as a secure and transparent digital dollar that meets the needs of Japan’s evolving digital economy”.
Circle plans on listing USDC on many exchanges in the country, including Binance Japan, Bitbank, and bitFlyer. Yoshitaka Kitao, SBI Holdings President, said that the approval of USDC would increase crypto innovation and improve access to financial products in the country.
“SBI Holdings is proud”, wrote Yoshitaka Kitao, “to play a key role in expanding USDC adoption in Japan, a move that enhances digital asset accessibility and promotes financial innovation. We believe this initiative will enhance financial accessibility and drive digital asset innovation, aligning with our broader vision for the future of payments and blockchain-based finance in Japan”.
Japan has a vision to merge crypto with existing financial institutions, using tokens, such as USDC stablecoin, to make international payments and digital banking, offering the services to both enterprises and individuals, so that the country will be at the forefront of digital innovation and advanced financial literacy. USDC will not only push forward this vision a bit further but will instill confidence in the cryptocurrency market and the use of blockchain to solve financial challenges. Circle Japan KK will be the business that introduces the stablecoin to the general public and will have to meet all of Japan’s regulatory requirements.
The Japanese Yen may encounter competition from the stablecoin, issued in U.S.-backed dollars, and in the event of inflation, may provide a method of dollarization to counter the negative economic effects of a debased currency. The stablecoin, therefore, may contribute to the outflow of Yen into the dollar backed USDC.
Japan is a fertile ground for stablecoin adoption, having its own web3 frameworks and being a leader in crypto innovation. Japan was a pioneer in web3 technology, long before other countries started the process of integrating web3 into the local economy. Circle chose Japan for this very reason, seeing the country as an appropriate place for stablecoin adoption and for further developing a crypto ecosystem in a promising business environment. The vision is that one day, people can live and work in Japan, using their USDC wallet for everyday purchases.
In 1999, SBI Group started operations globally and was a pioneer with internet based financial services in Japan. The company has branched out into crypto assets, providing exchanges and trading, in addition to web3 blockchains and DeFi innovations.
