USD Coin (USDC) stablecoin officially launches in Japan on March 26, 2025

This comes after SBI VC Trade, a cryptocurrency exchange owned by Japanese financial giant SBI Holdings, received approval from the Japan Financial Services Agency (FSA) to list USDC

Circle's USD Coin (USDC) is officially launching in Japan on March 26, 2025, marking a key moment for the Japanese crypto market.

The approval process wasn't quick. It took two years of discussion with regulators, banking partners, and industry players to get here.

After SBI VC Trade, a cryptocurrency exchange owned by Japanese financial giant SBI Holdings, received approval to list USDC, the brightest minds in the Japanese crypto scene have come together to bring this vision to life.

This makes USDC the first global dollar stablecoin approved for use in Japan.

SBI VC Trade will be the first exchange to list USDC, but the expansion is already planned.

Specifically, Binance Japan, bitbank, and bitFlyer also plan to list and distribute USDC in the near future.

These are major players in Japan's crypto ecosystem.

Bitbank and bitFlyer are among the country's largest exchanges, processing more than $25 million each per day with over 1.85 million monthly website visits.

To support local operations, Circle has established Circle Japan KK. This entity will work closely with SBI through a joint venture announced in 2023.

The partnership aims to combine USDC distribution with banking and Web3 technology for the Japanese market.

This partnership was forged in December 2022 when SBI Group announced plans to offer a tokenized version of its wholly owned bank, holding a third-party fiduciary to manage the tokens.

This move signaled a broader shift in Japan's financial landscape as the country continues to integrate digital assets into its mainstream financial system.

This initiative aligns with Japan's broader agenda for advancing blockchain-based finance.

Highlighting the partnership, Yoshitaka Kitao, CEO and president of SBI Holdings, said the launch would "enhance financial accessibility and drive crypto innovation" in Japan's evolving digital economy.

"We are excited to bring this innovation to the Japanese market," said Allaire.

"This initiative will unlock tremendous opportunities not just in trading digital assets, but more broadly in payments, cross border finance and commerce, FX, and Web3 services and applications."

This development comes at an interesting time for Japan's currency. The continued weakening of the Japanese yen against the US dollar creates unique market dynamics.

If the yen continues to show weakness, Japanese investors might turn to USDC as a hedge, which could potentially "increase selling pressure on JPY," according to Jay Jo, a senior research analyst at Tiger Research.

Easy access to dollar-denominated assets might accelerate outflows from traditional yen investments, especially if interest rate differentials remain wide.

This could have broader implications for the yen's exchange rate in the long term.

"The move by Japan's Financial Services Agency (FSA) to approve SBI to list USD Coin (USDC) is a significant step in the integration of digital assets into the country's financial system," said Jo.

"It also marks a key development for the global stablecoin market, as USDC becomes the first global dollar stablecoin approved for use in Japan after two years of discussions and cooperation between government agencies, commercial banks, and industry players."

The approval process was a collective effort involving regulators, banking partners, and industry players, assembling over two years to navigate legal and technical complexities.

This collaboration was crucial in setting the stage for USDC's launch in Japan.

The move is part of Japan's broader strategy to foster innovation in its financial sector and strengthen the competitiveness of its economy on the global stage.

The country has been actively exploring and introducing new technologies, particularly in the realm of digital assets.

As Japan continues to adapt to the evolving landscape of finance and technology, the launch of USDC marks a significant milestone in the country's journey towards a more integrated and interconnected financial system.