Circle Cracks Japan as USDC Becomes First Approved Stablecoin

Key Takeaways

• Circle is now the first stablecoin issuer approved for use in Japan.
• The company will offer USDC via SBI VC Trade.
• Circle’s expansion solidifies its presence across Japan, the U.S., and the EU.

Circle has become the first and only stablecoin issuer approved for use in Japanese markets, marking a major milestone in the company’s global expansion.

The approval allows Circle to introduce USDC in the region through its local subsidiary, Circle Japan KK.

Announcing the news on X , CEO Jeremy Allaire revealed that Circle is launching new operations in Japan as part of its strategic joint venture with SBI Holdings.

USDC Gains Ground in Japan

USDC will debut in Japan through SBI VC Trade, with an official launch slated for March 26. Other major Japanese exchanges are expected to follow suit soon.

Circle has been working closely with regulators, banking partners, and industry leaders in Japan for over two years to bring USDC to market.

In a statement, Allaire praised Japan’s regulatory leadership, emphasizing the country’s clear framework for stablecoin integration.

“Japan’s regulatory leadership has been out in front on clear rules for the use of stablecoins in the Japanese financial system,” Allaire said. “With Circle Japan KK and the strong support of SBI Holdings and leading exchanges, USDC is positioned as a secure and transparent digital dollar that meets the needs of Japan’s evolving digital economy.”

The approval paves the way for new payment solutions, cross-border finance, and foreign exchange opportunities.

Major Japanese exchanges, including Binance Japan, Bitbank, and BitFlyer, are expected to list and distribute USDC soon.

A Challenge to Tether’s Dominance?

Circle’s regulatory strides could challenge Tether, the dominant stablecoin issuer with a commanding market share.

While Circle and Tether were once neck and neck before the pandemic, Tether’s market dominance surged post-COVID, leaving Circle trailing behind.

However, with stablecoin regulations taking center stage—particularly in the U.S. and Europe—Circle has strategically positioned itself ahead of Tether in key regulated markets, including Japan and the EU.

Tether, which has yet to conduct a full independent audit of its reserves, may face mounting pressure as policymakers push for stablecoin oversight. Meanwhile, Circle, already compliant in multiple jurisdictions, could continue gaining ground.

With new regulations expected to reshape the stablecoin landscape, Circle’s expansion into Japan signals that the battle for market dominance is far from over.