SBI becomes first Japanese financial giant to handle USDC transactions

One of Japan’s biggest financial institutions, SBI, has received clearance to handle USDC transactions in Japan.

The company announced this on 4 March, saying that the clearance came after completing its electronic payment instrument business operator registration.

As a result of this, SBI VC Trade, the crypto arm of the institution plans to release a beta version of the USDC to a limited number of users on March 12 before commencing full support for transactions.

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A great feat

Japan is one of the strictest countries in the world when it comes to crypto regulation. This means it is a great achievement for SBI to secure the license to support stablecoin transactions. 

Stablecoins are a class of crypto assets that are backed 1:1 by another asset, which could be a precious stone or a fiat currency.

For USDC which is issued by Circle Internet Financial (Circle), the backing asset is the USD, and is currently the second largest stablecoin by market capitalization. 

As the market for such assets continues to grow, it makes sense for SBI to offer such services to the Japanese population.

Its parent company, SBI Holdings has signed a memorandum of understanding for a comprehensive business alliance with Circle and will commence handling USDC in full scale after completing the beta.

Through handling USDC, the company will provide customers with access to digital US dollars and promote efficient and cost-effective electronic payment methods in line with the development of the digital economy.

Other licenses

Apart from electronic payment instrument license, SBI has secured other licenses, including the cryptocurrency exchange business license and the Type 1 financial instruments business license. 

SBI aims to take advantage of the uniqueness and advantage these certifications offer to provide new cryptocurrency and stablecoin related services in Japan with a huge emphasis on the customers’ perspective to ensure they meet their demands.