SBI VC Trade becomes the first company in Japan to process USDC transactions

SBI VC Trade, the crypto arm of Japan's SBI Group, registered as an "Electronic Payment Service Provider," making it the first in the country

SBI VC Trade, a subsidiary of SBI Group and the crypto arm of the Japanese financial giant, has registered as an “Electronic Payment Service Provider” with the Financial Services Agency (FSA).

The registration, announced by SBI on Tuesday, makes it the first company in Japan to be authorized to process transactions for USD Coin (USDC) stablecoin.

The company will launch a beta version of USDC-related services for a limited number of users on March 12, following system maintenance.

“SBI VC Trade will be applying for the necessary registrations to enable full-scale rollout of USDC transactions as quickly as possible,” the company stated in a press release.

The development follows SBI Group’s agreement with Circle, the issuer of USDC, in March 2023 for a broader business partnership.

As part of the collaboration, SBI Shinsei Bank will be offering banking services to Circle, contributing to the accessibility and liquidity of USDC for businesses and individuals in Japan.

Moreover, SBI Group is set to integrate Circle’s Web3 solutions, such as programmable wallets, blockchain infrastructure, and smart contract management tools, as part of its digital asset strategy.

The news comes as USD Coin (USDC) has been rapidly recovering the losses it sustained during the most recent bear market and reached a new market capitalization high of $56.3 billion by February.

As reported by Token Terminal data, USDC's market cap experienced a 23.4% jump, climbing from $45.6 billion to its lowest point of $24.1 billion in November 2023.

The comeback can be attributed to Circle's expansion to more blockchains like Sui and Aptos and the minting of $6 billion USDC on Solana in January 2025.

Despite the significant recovery, USDC remains the second-largest stablecoin, with Tether's USDT still holding the top spot with a market capitalization of $141.6 billion as of February 10. Over the past 30 days, USDT has seen an addition of $4 billion to its market cap.

According to DefiLlama data, USDT continues to dominate the stablecoin market with a 63% share, though USDC's share has grown to 25%, up from 19.4% a year ago.

Stablecoins have also taken center stage in U.S. policy discussions under President Donald Trump's administration, with regulators considering new frameworks for digital dollar alternatives.

White House AI and crypto czar David Sacks has argued that stablecoins could “extend the dollar’s dominance internationally and digitally,” stressing that the administration seeks to promote stablecoin within the U.S.

The overall stablecoin market cap grew from $121 billion in August 2023 to $224 billion as of February, highlighting the increasing demand for dollar-linked digital assets and their integration into financial markets.