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

  • 25.03.2025 09:32
  • msn.com
  • Keywords: Stablecoins

Circle will launch its USDC stablecoin in Japan on March 26 after securing regulatory approval from the Japan Financial Services Agency, marking the first global dollar stablecoin approved for use in the country. The move is expected to boost digital asset trading and financial accessibility in Japan, with plans to expand USDC listings on major Japanese exchanges soon.

Coinbase Services

Estimated market influence

Circle

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Analyst rating: N/A

Launched USDC in Japan after regulatory approval

SBI Holdings

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Analyst rating: N/A

Approved to list and distribute USDC; benefits include increased crypto innovation and financial accessibility

Context

Analysis and Summary: Circle Launches USDC Stablecoin in Japan

  • Key Announcement: Circle will launch the USDC stablecoin on the Japan SBI VC Trade exchange on March 26, following regulatory approval under the Japan Financial Services Agency (FSA) framework.
  • Regulatory Milestone: This marks the first and only global dollar stablecoin approved for use in the Japanese market, after two years of negotiations with regulators.
  • Market Entry Strategy: Circle plans to list USDC on major Japanese exchanges, including bitbank, bitFlyer, and Binance Japan. These platforms have seen significant activity, handling over $25 million in the last 24 hours and attracting over 1.85 million visits in the past month.
  • Industry Impact: The launch is expected to boost cryptocurrency innovation and financial accessibility in Japan, aligning with SBI Holdings' vision for blockchain-based finance.
  • Global Expansion: USDC's market capitalization stands at $59.43 billion, making it a dominant player in the stablecoin market. Circle’s euro-backed EURC stablecoin was also recently recognized by Dubai Financial Services Authority (DFSA).
  • Regulatory Framework: The FSA will introduce stricter regulations for stablecoin issuers, allowing only licensed banks, money transfer agents, and trust companies to issue approved stablecoins.
  • Competitive Landscape: Circle’s move follows Coinbase CEO Brian Armstrong’s goal of replicating the success of Tether (USDT), USDC’s main competitor. However, Tether faces challenges, including Binance’s decision to delist USDT for EU customers by month-end.

Long-Term Effects and Market Implications

  • Japan’s Digital Asset Adoption: The approval underscores Japan’s growing focus on digital asset adoption and financial innovation.
  • Regulatory Compliance: The FSA’s framework sets a precedent for stricter oversight, potentially influencing other jurisdictions.
  • Cross-Border Finance: USDC’s availability in Japan could drive growth in cross-border payments, treasury management, and-commerce.

Strategic Considerations

  • Competitor Dynamics: Circle faces competition from Tether but holds a strong market position with its regulatory compliance and partnerships.
  • Market Expansion: The move into Japan positions Circle as a key player in Asia’s growing cryptocurrency market.