Japanese financial giant SBI Group has become the first company in Japan authorized to process stablecoin transactions after securing registration as an Electronic Payment Service Provider.
This approval allows SBI VC Trade, SBI’s digital asset division, to facilitate transactions involving USD Coin (USDC), the world’s second-largest stablecoin. To mark this milestone, SBI VC Trade will launch a beta version of its USDC transaction services on March 12, with plans for a full-scale rollout.
With this regulatory green light, SBI VC Trade can now offer buying, selling, deposits, and withdrawals of USDC for both retail and institutional clients. To comply with Japanese regulations, the company must hold an equivalent amount of U.S. dollars in reserve for every USDC deposited by customers. The funds will be custodied by Shinsei Trust Bank, an SBI Group subsidiary.
Japan has traditionally imposed strict restrictions on stablecoins but is gradually loosening regulations. Recent amendments to Japan’s Stablecoin Act have introduced: a 1 million yen (~$6,600) transaction cap for overseas-issued stablecoins, approval for stablecoins backed by fixed-term deposits and short-term government bonds, and a 50% cap on stablecoin collateral held in bonds and deposits.
The Japanese government is also considering lifting restrictions on Bitcoin ETFs, signaling broader efforts to modernize crypto policies.
With its new regulatory status, SBI is at the forefront of Japan’s stablecoin market, paving the way for greater digital asset adoption. As regulations evolve, SBI’s entry into stablecoin payments could set the stage for broader crypto and blockchain integration in Japan’s financial sector.
Image Credit: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
