SBI Group’s crypto unit SBI VC Trade is set to commence USDC stablecoin service later this month.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
The digital asset sector in Japan is taking a big step forward. According to the announcement, SBI VC Trade has secured government approval to handle stablecoins.
Based on the update, SBI VC Trade, the cryptocurrency section of SBI Group, announced earlier today that it has officially registered as an “electronic payment instrument business operator” with the Kanto Regional Financial Bureau.
This will make the crypto exchange the first organization in Japan to reach this important status. Following the approval, the organization is set to launch its stablecoin service for USD Coin USDC $1.00 24h volatility: 0.0% Market cap: $62.14 B Vol. 24h: $8.79 B on March 12.
The organization also revealed that the rollout will be in beta. This means that the distribution will be limited within the SBI Group.
While speaking to new media about the development, CEO Tomohiko Kondo said the group intends to examine the business flow before making it available to the public. This will help them understand what is working and where to improve before the launch.
The CEO also disclosed that USDC would be visible on users’ trading screens during the beta phase. This project will be the first step in the stablecoin’s expansion in Japan.
Moreover, the financial giant clarified that the service will ensure that individual and corporate customers buy, sell, deposit, and withdraw USDC.
To ensure stability, the trading platform plans to hold an equal or greater amount of US dollars corresponding to customer deposits. Shinsei Trust Bank, another subsidiary of SBI Group, will manage this security measure.
It is worth mentioning that, with this latest approval, SBI VC Trade now has three major licenses in the country. These include the type 1 financial instruments business, the cryptocurrency exchange business, and the trading business for electronic payment instruments. This is considered remarkable because no other company in Japan currently possesses all three licenses.
The exchange is also preparing to introduce trading pairs such as BTC/USDC and ETH/USDC for spot trading and leveraged trading options using USDC. This move is expected to bring new opportunities to Japan’s crypto market, which has seen slow stablecoin adoption due to regulatory challenges.
It is important to say that Stablecoins are tokens (COINs) that are stably linked to fiat currencies. They are ideal for people who trade cryptocurrencies daily and those who need a bridge currency to fiat notes.
Interestingly, this latest development comes days after SBI Group of Japan, through SBI VC Trade, announced that its digital assets lending service is now available to customers.
Last month, Coinspeaker reported that SBI Holdings plans to distribute incentives to eligible shareholders. Those holding between 100 and 999 shares, or at least 1,000 shares for less than a year, can choose 2,000 yen in XRP. In place of 2000 XRP, they could also pick health and functional food products from SBI ALApromo Co., a subsidiary of SBI. This reward scheme is proof of the firm’s thriving crypto unit.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
