In the latest step toward global stablecoin adoption, the crypto subsidiary of Japan’s SBI financial services company will soon support Circle’s USDC stablecoin.
SBI Group is a vast conglomerate with businesses spanning industries from banking to biotechnology. Its crypto division, VC Trade, was launched almost a decade ago and currently supports digital assets like bitcoin, Ether, and XRP.
Until two years ago, the Japanese government had a ban on stablecoins backed by foreign currencies. Although regulations have since eased, questions remained about how soon a USD-tracking stablecoin would hit the market.
SBI VC Trade CEO Tomohiko Kondo recently stated that the platform had received word from the Kanto Regional Financial Bureau’s Tokyo office that it was registered as an electronic payment instrument trading business operator. The platform plans to launch a USDC trading trial for selected users later this month, followed by a widescale USDC rollout soon.
Global Reach
Kondo has also said that SBI VC Trade was “the first and only company in Japan to obtain a so-called stablecoin license.” Circle founder and CEO Jeremy Allaire echoed this sentiment, calling USDC the “first and only global dollar stablecoin to become approved for use in Japan.”
Circle has been rapidly expanding USDC’s global reach, as the stablecoin recently achieved compliance with Canada’s new stablecoin laws. The Canadian Securities Administrators implemented a set of rules defining Value-Referenced Crypto Assets (VCRA), including digital assets that track the value of a fiat currency. As of December, USDC was the only stablecoin to meet Canada’s requirements.
Jumping Ship
While Circle is making strides, Tether’s USDT stablecoin still holds a commanding position in the market, boasting more than double the market capitalization of USDC. Additionally, numerous other stablecoin options, including those from Dai, Ethena, and even PayPal’s PYUSD, pose challenges to Circle’s position. However, despite the crowded landscape, Circle continues to stand out.
“At the end of the day, they’re all pretty much the same product, but they’re not managed the same,” Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research told PaymentsJournal. “If Circle continues to gain compliance in other jurisdictions, retail users will likely jump ship because their platform faces less risks. A lot of institutions prefer USDC over Tether currently, and this trend will continue as well.”
