Circle Expands USDC Operations in Japan with SBI VC Trade Launch

Circle Internet Financial, a U.S.-based firm behind the USDC stablecoin, is strengthening its presence in Japan's growing digital assets market. The company has established a local entity, Circle Japan KK, to support USDC's operations in the region. This move comes as SBI VC Trade, a crypto exchange subsidiary of SBI Holdings, prepares to launch USDC trading on March 26, 2025. SBI VC Trade received regulatory approval earlier this month, making USDC the first stablecoin of its kind to be approved under Japan’s regulatory framework.

Circle's deepening commitment to Japan is part of a broader strategy to expand the use of USDC in the region. The stablecoin is fully reserved and backed 100% by cash and cash-equivalent assets, with reserves held at regulated financial institutions that publish third-party monthly attestations. This ensures that USDC maintains its value and stability, making it a reliable option for payments, cross-border finance, commerce, and foreign exchange transactions.

Circle co-founder and CEO Jeremy Allaire highlighted the potential of this development, stating that it would unlock "tremendous opportunities" for Japan’s digital assets markets. The launch of USDC in Japan is expected to power various use cases, including payments, cross-border finance, commerce, and foreign exchange. This initiative builds on a partnership between Circle and SBI Holdings that began in 2023, combining USDC distribution with banking and Web3 technology for the Japanese market.

In addition to SBI VC Trade, domestic exchanges such as Binance Japan, Bitbank, and BitFlyer also plan to list and distribute USDC in the near future. This widespread adoption of USDC in Japan is expected to create new opportunities for the country's digital asset sector. Japanese companies could offer custody services and develop various stablecoin-based businesses, further integrating USDC into the local financial ecosystem.

While Japan currently prohibits trust-based yen stablecoins, future regulatory developments could shape the direction of its crypto and digital asset sector. The continued depreciation of the Japanese yen could create market dynamics, with Japanese investors potentially shifting to USDC as a hedge against the weakening currency. This could lead to increased selling pressure on the yen and accelerated outflows from traditional yen investments, especially if interest rate differentials remain wide.

Overall, Circle's deepening commitment to Japan and the launch of USDC by SBI VC Trade mark a significant step forward for the digital assets market in the region. The stablecoin's introduction is expected to bring new opportunities and innovations, further integrating digital assets into Japan's financial landscape.