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Circle to launch USDC stablecoin in Japan on March 26 following regulatory approval

Circle to launch USDC stablecoin in Japan on March 26 following regulatory approval

  • 25.03.2025 09:06
  • cryptopolitan.com
  • Keywords: Stablecoin, Japan

Circle will launch its USDC stablecoin in Japan on March 26 after receiving regulatory approval from the Japan Financial Services Agency, making it the first global dollar stablecoin approved for use in the country. The move follows two years of negotiations and aligns with plans to list USDC on major Japanese exchanges like bitbank, bitFlyer, and Binance Japan, unlocking opportunities in digital asset trading and cross-border finance.

Coinbase Services

Estimated market influence

Circle

Positivesentiment_satisfied
Analyst rating: N/A

Launched USDC in Japan after regulatory approval, expanding market presence.

SBI VC Trade

Positivesentiment_satisfied
Analyst rating: N/A

Received first regulatory approval for stablecoin trading

Binance

Negativesentiment_dissatisfied
Analyst rating: N/A

Delisting USDT affects its market position

Context

Analysis of Circle's USDC Launch in Japan

Key Facts and Data Points

  • Launch Date: March 26, 2024
  • Exchange: Japan SBI VC Trade
  • Regulatory Approval: Secured under Japan Financial Services Agency’s stablecoin framework
  • Market Capitalization of USDC: $59.43 billion
  • Exchanges Planning Listing: bitbank, bitFlyer, and Binance Japan
    • bitbank: Over $25 million in volume over the last 24 hours
    • bitFlyer: Over 1.85 million visits in the past month

Market Insights

  • First Stablecoin Approval in Japan: USDC is the first global dollar stablecoin approved for use in Japan, giving Circle a significant market advantage.
  • Regulatory Framework Impact: Japan’s new regulations will restrict stablecoin issuance to licensed banks, registered money transfer agents, and trust companies, creating a controlled but credible environment for stablecoins.

Competitive Landscape

  • USDC vs Tether (USDT):
    • USDC aims to compete with Tether, its main rival, which has faced challenges such as delisting by Binance for EU customers.
    • Coinbase’s goal to replicate Tether’s success underscores the competitive stakes in the stablecoin market.

Strategic Considerations

  • Unlocking Opportunities: Jeremy Allaire highlighted potential growth in trading, payments, cross-border finance, and FX.
  • Expansion Strategy: Circle plans to list USDC on major Japanese exchanges, leveraging Japan’s mature cryptocurrency market.

Long-term Effects

  • Establishment of Regulatory Precedent: Japan’s approval sets a benchmark for other regions, potentially influencing global stablecoin regulations.
  • Potential Market Dominance: Early adoption in Japan could position USDC as the preferred stablecoin in the region, impacting broader financial services.

Regulatory Implications

  • Stringent Oversight: The regulatory framework ensures consumer protection and financial stability, aligning with global trends toward stricter cryptocurrency regulation.

This analysis highlights Circle’s strategic move to enter the Japanese market, leveraging regulatory approval to strengthen its position in the stablecoin sector while addressing competitive dynamics and long-term market implications.