SBI VC Trade Pioneers Stablecoin in Japan

SBI VC Trade, a subsidiary of SBI Group, has made history in Japan by becoming the first firm to receive regulatory approval for handling stablecoins. The exchange has secured an "electronic payment instrument business operator" license, paving the way for the launch of its stablecoin service on March 12.

The initial phase of the service will be a beta launch, with a limited number of customers within the SBI Group having access to the Circle-issued stablecoin, USD Coin (USDC). The service will enable customers to buy, sell, deposit, and withdraw USDC, with the stablecoin being pegged to the U.S. dollar. To ensure security, SBI VC Trade will maintain an equal or greater amount of U.S. dollars in reserve to match the deposited USDC.

Shinsei Trust Bank, another member of the SBI Group, will be responsible for the trust security of the stablecoin service. Upon the beta launch, users will be able to see "USDC" displayed on the SBI VC Trade trading platforms. The stablecoin will be available for spot trading with pairs such as BTC/USDC and ETH/USDC, and leveraged trading with USDC is also expected to be included.

SBI VC Trade is currently the only Japanese firm holding all three operating licenses: a cryptocurrency exchange business license, the financial instruments business type 1 license, and the electronic payment instruments trading business license. This regulatory approval comes after the Japanese Financial Services Agency approved a report in February 2023, which included a reform allowing stablecoins to be backed by short-term government bonds and fixed-term deposits in addition to demand deposits, with an upper limit of 50% on the bonds and deposits used as collateral.