SBI VC Trade, a leading cryptocurrency trading firm in Japan, has made history by becoming the first company in the country to receive regulatory approval to handle stablecoins. This groundbreaking development comes as the exchange prepares to launch its stablecoin service, with plans to start processing transactions using the USD Coin (USDC) on March 12.
According to a report by CoinDesk Japan, SBI Group’s crypto trading arm has been granted an “electronic payment instrument business operator” license by the Kanto Regional Financial Bureau, making it the first Japanese firm to achieve this milestone. The firm, registered with the number No. 00001, is now poised to revolutionize the cryptocurrency landscape in Japan by offering stablecoin services to its customers.
The stablecoin service, which will initially be in beta phase and limited to a select group of customers within the SBI Group, will eventually be made available to the public. This will enable individual and corporate clients to buy, sell, deposit, and withdraw USDC, a stablecoin pegged to the U.S. dollar. To facilitate these transactions, SBI VC Trade will need to secure an equivalent amount of U.S. dollars to match the USDC deposits made by customers.
Tomohiko Kondo, CEO of SBI VC Trade, revealed that Shinsei Trust Bank, a member of the SBI Group, will be responsible for ensuring the firm’s trust security. He emphasized that users will soon see USDC displayed on the trading platforms, with spot trading pairs such as BTC/USDC and ETH/USDC expected to be available. Additionally, leveraged trading with USDC will also be included on the platform, offering customers a range of trading options.
SBI VC Trade’s achievement is further underscored by the fact that it now holds all three operating licenses required for cryptocurrency trading in Japan: a cryptocurrency exchange business license, a financial instruments business type 1 license, and the electronic payment instruments trading business license. This places the firm at the forefront of the cryptocurrency industry in Japan, setting a new standard for regulatory compliance and innovation.
The approval of stablecoin regulations by the Japanese Financial Services Agency last February paved the way for SBI VC Trade’s groundbreaking initiative. The reforms allow stablecoins to be backed by short-term government bonds and fixed-term deposits, in addition to demand deposits, with an upper limit of 50% on the bonds and deposits that can be used as collateral for stablecoins.
As SBI VC Trade prepares to launch its stablecoin service, the cryptocurrency community eagerly anticipates the impact of this milestone on the Japanese market. With the potential to revolutionize the way digital assets are traded and transacted, SBI VC Trade’s foray into stablecoins marks a significant step forward for the cryptocurrency industry in Japan and beyond.