- USDC secures Japan’s regulatory greenlight: First global stablecoin compliant under 2022 laws, backed 1:1 via SBI partnership.
- Circle targets Japan’s $1.1T cross-border payments: USDC to rival Progmat Coin, slashing traditional banking fees by 3-5%.
Circle’s dollar-pegged stablecoin, USDC, has secured approval from Japan’s Financial Services Agency (FSA), becoming the first foreign stablecoin compliant with the nation’s strict 2022 payment laws.
The FSA’s decision, finalized after a 24-month review, allows Circle to roll out USDC through a partnership with SBI Holdings, one of Japan’s largest financial conglomerates. Starting March 26, SBI VC Trade will enable USDC trading, with platforms like Binance Japan and BitFlyer following suit.
Japan’s stablecoin regulations, enacted post-TerraUSD collapse, mandate full fiat backing and instant redemptions. USDC’s compliance with these rules positions it as a liquidity tool for institutions and retail traders seeking dollar exposure without traditional banking delays.
Jeremy Allaire, Circle’s CEO, emphasized Japan’s role as a “testing ground” for regulated stablecoin adoption in Asia. SBI’s Yoshitaka Kitao added that the collaboration aims to modernize Japan’s payment rails using blockchain efficiency.
BREAKING NEWS: @Circle announces that USDC and EURC are now available under new EU stablecoin laws; Circle is the first global stablecoin issuer to be compliant with MiCA. Circle is now natively issuing both USDC and EURC to European customers effective July 1st.
Details… pic.twitter.com/isNBumoi3e
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) July 1, 2024
The approval coincides with Circle’s global regulatory sprint. Last July, USDC became the first stablecoin to align with the EU’s MiCA framework. A draft U.S. IPO filing in January and a Binance liquidity pact in December further signal ambitions to dominate compliant digital dollar markets. Analysts note that USDC’s entry could disrupt Japan’s $1.1T cross-border payment sector, where transaction fees average 3-5%.
USDC’s 1:1 dollar reserves and audit transparency contrast with rivals like Tether’s USDT, which faces ongoing scrutiny over its backing. While USDT dominates crypto trading volumes, USDC’s regulatory wins in Japan and Europe appeal to risk-averse institutions. Mitsubishi UFJ’s Progmat Coin, a yen-pegged stablecoin, now faces direct competition in its home market.
Market impact hinges on adoption. Japan’s aging population and cash-heavy economy pose challenges, but SBI’s influence across banking and securities could fast-track institutional use. Meanwhile, USDC’s integration with local exchanges may attract retail traders seeking cheaper JPY-to-dollar conversions.
As Japan’s crypto framework becomes a regional blueprint, USDC’s success could redefine how Asia bridges fiat and crypto liquidity — one compliant transaction at a time.
