Circle Launches USDC in Japan, First Global Stablecoin Approved

Circle Internet Group, Inc., a prominent global financial technology company, has announced its strengthened commitment to the Japanese market by leveraging its local entity, Circle Japan KK, and strategic partnerships to drive the adoption of its stablecoin, USDC. This move comes as SBI VC Trade, a subsidiary of a Japanese financial conglomerate, secured regulatory approval from the Japan Financial Services Agency to introduce USDC under the country's stablecoin regulatory framework. This approval makes USDC the first and only global dollar stablecoin approved for use in Japan.

The launch of USDC in Japan is a significant milestone in the partnership between Circle and the Japanese financial conglomerate, which began in 2023. The collaboration aims to combine USDC distribution, banking, and Web3 technology proliferation for the Japanese market. Leading exchanges have also committed to listing and distributing USDC in the near future, further solidifying USDC's market presence and liquidity in the country.

Circle's launch in Japan not only establishes USDC's market presence but also signals growing institutional confidence in its utility and reliability. With a dedicated local entity, Circle is well-positioned to accelerate stablecoin adoption, enhance market infrastructure, and support businesses and institutions by fostering talent to drive digital finance innovation. By integrating USDC into Japan’s digital finance ecosystem, Circle and its partners seek to provide reliable solutions for digital payments, settlements, and treasury operations.

Jeremy Allaire, Co-founder and CEO of Circle, expressed his enthusiasm for the launch, stating, "Japan has long been at the forefront of the adoption of Web3 and blockchain technology, and Japan’s regulatory leadership has similarly been out in front on clear rules for the use of stablecoins in the Japan financial system. We are honored to bring USDC to businesses and consumers in the market, and with Circle Japan KK and the strong support of the Japanese financial conglomerate and leading exchanges, USDC is positioned as a secure and transparent digital dollar that meets the needs of Japan’s evolving digital economy."

Ask Aime: What is the impact of Circle's stablecoin approval in Japan on the global digital finance landscape?

The Representative Director, Chairman, President & CEO of the Japanese financial conglomerate also highlighted the significance of this initiative, saying, "The Japanese financial conglomerate is proud to play a key role in expanding USDC adoption in Japan, a move that enhances digital asset accessibility and promotes financial innovation. We believe this initiative will enhance financial accessibility and drive digital asset innovation, aligning with our broader vision for the future of payments and blockchain-based finance in Japan."

USDC is a fully-reserved digital dollar backed 100% by highly liquid cash and cash-equivalent assets and is redeemable 1:1 for US dollars. The USDC reserves are held at regulated financial institutions with published third-party monthly attestations, providing a high level of transparency for businesses and users. This transparency and reliability are crucial for fostering trust and adoption in the Japanese market, where regulatory compliance and financial stability are paramount.