A subsidiary of Japan’s financial giant SBI Holdings has become the country’s first registered provider of USDC stablecoin.

The company, which operates a licensed cryptocurrency exchange, announced that it has completed its registration as an Electronic Payment Instruments Business Operator, clearing the way for it to handle Circle’s USDC stablecoin under Japan’s regulatory framework.

The Kanto Regional Financial Bureau granted registration on March 4, making it the first entity in Japan officially authorized to distribute a stablecoin tied to the value of the US dollar. 

The move comes as Japan implements stricter oversight of electronic payment instruments following regulatory changes in June 2023.‍

Japan’s Regulatory Shift and SBI’s Role

Japan’s financial regulators have tightened controls over stablecoin issuance and distribution, requiring firms handling such digital assets to register under the Fund Settlement Act and the Banking Act. 

This regulatory shift reflects global concerns about stablecoin transparency, liquidity, and compliance with traditional financial systems.

SBI Holdings, one of Japan’s largest financial groups, has been positioning itself as a key player in the stablecoin space. In November 2023, SBI signed a memorandum of understanding with Circle, the US-based issuer of USDC, the world’s largest regulated stablecoin. 

The new registration now allows its subsidiary to act as an official distributor of USDC in Japan, expanding access to digitalized US dollars in a regulated environment.‍

Limited Release Before Full-Scale Rollout

With the regulatory approval secured, the company plans to launch a beta version of USDC for a limited number of users following a scheduled system update on March 12. A full-scale rollout of USDC services is expected in the near future, subject to further testing and regulatory compliance measures.

USDC is a fully backed stablecoin, meaning that every token in circulation is supported by cash and cash-equivalent reserves held in trusted financial institutions. 

The company emphasized third-party certification reports as part of efforts to maintain transparency and credibility—a key concern for regulators overseeing the stablecoin industry.‍

SBI Expanding Crypto and Stablecoin Services

With this latest registration, SBI’s subsidiary now holds three key financial licenses: a cryptocurrency exchange business license (No. 00011), a Type 1 financial instruments business license (No. 3247), and an electronic payment instruments business license (No. 00001). 

This rare combination of licenses sets the company apart in Japan’s crypto sector, giving it an edge in offering integrated digital asset services. 

The company has hinted at future plans to introduce new cryptocurrency and stablecoin-related services that leverage this multi-license framework.

Japan has historically maintained a cautious approach to stablecoins, enforcing strict compliance standards and ensuring that issuers meet anti-money laundering (AML) and consumer protection measures. The introduction of USDC into Japan’s financial ecosystem could pave the way for more regulated stablecoin adoption, enabling faster cross-border transactions and new payment solutions.