SBI Becomes First Japanese Financial Giant To Gain Key License to Process USDC Transactions

Key Takeaways

• SBI VC Trade, the crypto arm of Japanese financial giant SBI, has received approval to process stablecoin transactions.
• The approval makes SBI the first registered Japanese firm authorized to handle stablecoin payments.
• The company will launch a beta version of its USDC transaction platform on March 12.
  

Japanese financial powerhouse SBI has completed its registration as an Electronic Payment Service Provider, making it the first company in Japan authorized to process stablecoin transactions.

The approval allows SBI VC Trade, the digital asset division of SBI Group, to handle transactions involving USD Coin (USDC), the second-largest stablecoin by market capitalization.

SBI To Roll Out USDC Services in Beta

Following the regulatory green light, SBI VC Trade will launch a beta version of its USDC transaction services on March 12. The company stated:

“We aim to further expedite the full-scale introduction of USDC handling.”

The approval enables SBI VC Trade to offer buying, selling, depositing, and withdrawing USDC for both retail and institutional clients.

To comply with regulations, the firm must hold an equivalent amount of U.S. dollars in reserve for every USDC deposited by customers.

Shinsei Trust Bank, an SBI Group subsidiary, will oversee the custody of these funds.

With this latest approval, SBI VC Trade now holds three financial licenses:

• Electronic Payment Instruments License – for stablecoin transactions.
• Cryptocurrency Exchange License – for digital asset trading.
• Type 1 Financial Products License – for investment services.

Japan’s Shifting Stance on Stablecoins’

After years of tight restrictions, Japan is gradually opening up to stablecoins.

Regulators have set a 1 million yen ($6,600) transaction cap for overseas-issued stablecoins, reflecting a cautious but evolving approach.

The shift follows recent amendments to Japan’s Stablecoin Act , which now permits stablecoins backed by fixed-term deposits and short-term government bonds.

A 50% limit has also been imposed on the portion of stablecoin collateral that can be held in bonds and deposits.

The country’s latest regulatory steps align with broader efforts to modernize its crypto policies.

Japan’s ruling party, which campaigned on promises to ease crypto regulations, has also floated proposals to lift restrictions on Bitcoin exchange-traded funds (ETFs).

SBI’s new regulatory status positions it at the forefront of Japan’s stablecoin expansion, potentially paving the way for broader adoption of digital assets in the country.