USDC Becomes Japan’s First Legally Recognized Dollar Stablecoin

Japan’s digital economy is about to reach a milestone. SBI VC Trade, SBI Holdings’ cryptocurrency exchange, will start full-scale trading of USD Coin (USDC) on March 26, a March 25 press release announced. This comes after USDC became the first foreign dollar-backed stablecoin to be legally recognized as part of Japan’s stablecoin system, as sanctioned by the Financial Services Agency (FSA).

For Circle, the USDC issuer, this is two years of collaboration with Japanese regulators and banking partners. It not only acknowledges Japan’s open regulatory regime, but it also offers opportunities for digital trade, cross-border payments, and financial innovation.

Circle’s Commitment to Japan’s Digital Economy

Circle CEO Jeremy Allaire expressed that he was looking forward to the news, pointing to the potential of stablecoins in Japan’s changing digital landscape.

“We are honored to bring USDC to businesses and consumers in the market, and with Circle Japan KK and the strong support of SBI Holdings and leading exchanges, USDC is positioned as a secure and transparent digital dollar that meets the needs of Japan’s evolving digital economy,” he said.

This launch isn’t just about adding another trading pair; it’s about trust and compliance. Japan’s framework provides clarity for businesses and consumers alike, making USDC more than just a cryptocurrency it becomes a tool for innovation and stability.

USDC’s Growing Global Adoption

While Japan is a key milestone, Circle has been actively expanding USDC’s footprint globally. GCash, the country’s largest mobile wallet with a user base of about 100 million, rolled out USDC support on March 20. This further cements USDC in the Philippines’ $65 billion yearly remittance market, facilitating faster and more efficient cross-border payments.

Apart from that, USDC and Circle’s euro-backed stablecoin EURC have been approved in Dubai as the very first stablecoins under the new regime of the Dubai Financial Services Authority. The approval allows companies within the economic free zone of Dubai to use these stablecoins for treasury, financial services, and payment transactions.

Market Growth and Competitive Landscape

USDC market capitalization has been growing consistently, with $2.6 billion printed over the last 30 days. Its market cap stands at $59.75 billion as of March 25, according to DefiLlama. Although Tether (USDT), Circle’s arch-rival, remains dominant with a 61.93% stablecoin market share, it is under growing regulatory pressure, particularly in Europe where it has been delisted from the majority of exchanges.

Meanwhile, Circle keeps reinforcing its credibility by sticking to global regulations, such as the Markets in Crypto Authority framework. Its dedication to compliance and openness strengthens USDC’s position as one of the world’s most stable stablecoins.

Looking Ahead

SBI Holdings sees the introduction of USDC trading as a milestone for Japanese digital assets. Besides SBI VC Trade, other exchanges like Binance Japan, bitbank, and bitFlyer will list USDC to extend its reach. As Japan works proactively towards creating a regulatory framework that supports innovation, stablecoins like USDC are likely to revolutionize cross-border business, digital payment, and finance in general.