SBI VC Trade Pioneers USDC Transactions in Japan

SBI VC Trade, the cryptocurrency division of Japan‘s financial giant SBI Group, has become the first entity in the country to process transactions involving the USDC stablecoin. This milestone follows the company’s official registration as an Electronic Payment Service Provider, enabling it to facilitate digital asset settlements in compliance with Japans regulatory framework.

The company confirmed the development on Tuesday, announcing that a beta version of USDC-related services would be introduced on 12 March for select users following scheduled system maintenance. SBI VC Trade has outlined plans to accelerate the widespread adoption of USDC transactions, reflecting its broader ambitions within the digital asset sector.

This initiative aligns with SBI Groups strategic expansion into the cryptocurrency market. In 2023, the financial conglomerate entered into a business partnership with Circle, the issuer of USDC, aiming to strengthen its role in stablecoin adoption and blockchain infrastructure development. SBI further reinforced its presence in the industry by acquiring DMM Bitcoin in December 2024. The local cryptocurrency exchange had ceased operations after suffering a $300 million security breach, prompting SBI to take over the management of customer accounts and custodial assets.

Japan‘s regulatory landscape has undergone significant changes in response to the growing prominence of stablecoins. In June 2023, the government introduced stricter requirements under the Funds Settlement Act and the Banking Act, mandating that service providers obtain official registration to facilitate stablecoin circulation. SBI VC Trade’s successful registration underscores its commitment to compliance and innovation within this evolving regulatory environment.

As part of its broader digital asset strategy, SBI Group is integrating Circle‘s Web3 solutions, including programmable wallets, blockchain infrastructure, and smart contract management tools. Additionally, SBI Shinsei Bank is set to offer banking services to Circle, enhancing USDC’s accessibility and liquidity for businesses and individual users in Japan.

The resurgence of USDC has been notable in recent months. In February, the stablecoin regained a market capitalisation of $56.3 billion, recovering from the downturn experienced during the latest cryptocurrency bear market. This represents a 23.4% increase from $45.6 billion, marking a significant rebound from its lowest valuation of $24.1 billion in November 2023. The recovery has been bolstered by Circles expansion across multiple blockchain networks, including Sui and Aptos, and the minting of $6 billion in USDC on Solana in January 2025.

Despite USDC‘s growth, Tether’s USDT remains the dominant stablecoin, with a market capitalisation of $141.6 billion as of 10 February. Over the past month, USDT has gained an additional $4 billion in market value. Data from DefiLlama indicates that USDT commands a 63% share of the stablecoin market, while USDCs share has risen to 25%, up from 19.4% a year earlier.

The overall stablecoin market has witnessed significant growth, expanding from a valuation of $121 billion in August 2023 to $224 billion by February 2025.