Circle’s USDC Becomes First Stablecoin Approved for Use in Japan

Circle, the world’s second-largest stablecoin issuer, has received regulatory approval to introduce its USD Coin (USDC) to Japan. 

This milestone, announced on Tuesday, makes USDC the first global dollar-backed stablecoin authorized under Japan’s Financial Services Agency (FSA) framework.

A strategic partnership with SBI Holdings supports circle’s entry into the Japanese market. According to the announcement, SBI VC Trade, an SBI Holdings subsidiary, will officially launch USDC on March 26 as part of this initiative. Major Japanese cryptocurrency exchanges, including Binance Japan, Bitbank, and BitFlyer, are also preparing to list USDC in the near future.

That said, the approval represents a major step in Japan’s efforts to regulate and integrate stablecoins into its financial ecosystem. With increasing adoption of Web3 and blockchain technology, Japan has established clear regulatory guidelines, positioning itself as a leader in digital asset governance.

Jeremy Allaire, CEO of Circle, emphasized Japan’s progressive approach, stating, “We are honored to bring USDC to businesses and consumers in this market. With the strong support of SBI Holdings and leading exchanges, USDC is set to be a secure and transparent digital dollar for Japan’s evolving digital economy.”

Elsewhere, Yoshitaka Kitao, CEO of SBI Holdings, called the partnership a milestone, stating, “This initiative enhances digital asset accessibility and promotes financial innovation, aligning with our vision for the future of payments and blockchain-based finance in Japan.”

Notably, Circle has been working for over two years to secure approval for its stablecoin operations in Japan. In July 2023, Allaire revealed that Circle was planning to introduce USDC in the country. At the time, he highlighted Japan’s evolving regulatory framework for stablecoins and expressed confidence that the nation could become a key market for cross-border crypto transactions. 

Under a legislation passed in June 2022, stablecoins in Japan must be backed by the yen or another legal currency and provide holders with the right to redeem them at face value.

Meanwhile, the approval in Japan follows a series of strategic regulatory moves by Circle. In July 2024, the company became the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. Furthermore, in January 2024, Circle filed a draft registration statement with the U.S. Securities and Exchange Commission (SEC) for a potential initial public offering (IPO), signaling its intention to further establish itself as a leader in the stablecoin industry.

Additionally, in December 2024, Circle partnered with Binance, the world’s largest cryptocurrency exchange, to increase the adoption and availability of USDC across Binance’s ecosystem, underscoring the company’s proactive approach to global regulatory compliance and stablecoin market expansion.