SBI VC Trade, a crypto trading firm under the SBI Group, has become the first company in Japan to receive regulatory approval to handle stablecoins. The firm has secured an “electronic payment instrument business operator” license, allowing it to facilitate stablecoin transactions. SBI VC Trade plans to begin processing USDC (USD Coin) transactions starting on March 12.
Regulatory Approval and License
According to a report by CoinDesk Japan, SBI VC Trade has officially received approval from Japan’s financial authorities, making it the first firm in the country to be registered under this new category. The company is now listed with the Kanto Regional Financial Bureau under registration number No. 00001. This regulatory clearance positions SBI VC Trade as a leader in Japan’s expanding crypto space, especially in terms of stablecoin services.
Launch of USDC Transactions
Following its approval, SBI VC Trade plans to start processing transactions using USDC, the stablecoin issued by Circle, on March 12. Initially, the stablecoin service will be in beta, with access limited to a select group of users within the SBI Group. The service will allow customers to conduct transactions with USDC, including buying, selling, depositing, and withdrawing the stablecoin once it becomes widely available.
Since USDC is pegged to the U.S. dollar, SBI VC Trade will need to hold sufficient reserves of U.S. dollars, ensuring that the amount of USDC issued matches or exceeds the customer deposits.
Future Availability and Features
When the stablecoin service is fully launched, SBI VC Trade will offer a range of features for both individual and corporate customers, including the ability to trade USDC in spot trading pairs like BTC/USDC and ETH/USDC. The platform also plans to introduce leveraged trading with USDC in the near future.
CEO of SBI VC Trade, Tomohiko Kondo, mentioned that Shinsei Trust Bank, a subsidiary of SBI Group, will be responsible for the trust security of the stablecoin service. During the beta phase, users will begin to see USDC displayed on the company’s trading platforms.
“We will first monitor the business flow and aim to launch it fully as soon as possible,” Kondo said in a statement.
Regulatory Landscape and Future Prospects
At present, SBI VC Trade is the only Japanese firm holding all three essential operating licenses: a cryptocurrency exchange business license, a financial instruments business type 1 license, and an electronic payment instruments trading business license.
Recent regulatory reforms approved by the Japanese Financial Services Agency in February allow stablecoins to be backed by short-term government bonds and fixed-term deposits, in addition to demand deposits. The proposal also includes a cap, limiting the bonds and deposits backing stablecoins to 50% of the total collateral.
With these regulatory changes and SBI VC Trade’s pioneering role, Japan is on track to become a key player in the stablecoin and digital asset markets, potentially reshaping the future of cryptocurrency trading in the country.