SBI VC Trade Gains Approval to Support USDC in Japan

As Japan opens its doors to foreign stablecoins and industry experts debate their role in blockchain legitimacy, the cryptocurrency landscape continues to evolve. SBI VC Trade has secured approval to process USDC transactions, positioning itself as a pioneer in Japan’s stablecoin market. Meanwhile, crypto analyst ZachXBT has sparked discussion by suggesting that the presence of major stablecoins is a key indicator of a blockchain’s legitimacy, drawing responses from Cardano and XRP Ledger proponents. 

SBI VC Trade Becomes First Japanese Platform to Support USDC as Stablecoin Regulations Loosen

SBI VC Trade, a subsidiary of financial conglomerate SBI Holdings, has officially secured registration to support Circle’s USDC stablecoin. The move comes amid a broader regulatory shift in Japan, allowing foreign stablecoins greater accessibility within the financial system.

On March 4, SBI VC Trade announced that it had completed the first stage of registration for stablecoin transactions, paving the way for the platform to process USDC transactions. The registration approval positions SBI VC Trade as a pioneering financial platform in Japan, with plans to roll out USDC trading in phases. A trial launch for selected users is set for March 12, followed by a broader rollout in the near future.

Confirming the milestone, SBI VC Trade CEO Tomohiko Kondo took to X to share that the company had received notification from the Kanto Regional Financial Bureau’s Tokyo office regarding its registration as an electronic payment instrument trading business operator. “SBI VC Trade has become the first and only company in Japan to obtain a so-called stablecoin license,” Kondo stated, emphasizing the firm’s commitment to expanding USDC support.

SBI VC Trade’s latest announcement marks a key moment in Japan’s evolving regulatory framework around stablecoins. The country had previously imposed a ban on foreign stablecoins, limiting their circulation within its financial ecosystem. However, a regulatory shift in 2023 lifted these restrictions, allowing foreign stablecoins to gain footholds in the Japanese market under specific compliance guidelines.

This regulatory relaxation was reinforced in February when Japan’s Financial Services Agency (FSA) approved a report from a working group that recommended easing regulations surrounding stablecoins. These policy changes are expected to facilitate smoother integration of stablecoins into the financial system, particularly in remittance and settlement services.

The approval for SBI VC Trade to process USDC transactions aligns with broader sentiments from Japan’s financial authorities. On the same day as SBI’s announcement, Financial Services Agency Commissioner Hideki Ito expressed his support for stablecoin adoption in Japan during the Fin/Sum 2025 event at Japanese Fintech Week.

“Stablecoins are used soundly for the sophistication of remittance and settlement. I hope it will be done,” Ito stated in his speech, reinforcing Japan’s commitment to leveraging stablecoins for financial innovation.

SBI Holdings and its subsidiaries have long been involved in digital asset adoption. The firm has engaged in numerous partnerships with US-based companies, including Ripple, which has played a key role in facilitating cross-border payments and blockchain innovations.

Expanding Crypto Offerings at SBI VC Trade

SBI VC Trade has already established itself as a major player in Japan’s cryptocurrency sector. The platform supports an array of digital assets, including Bitcoin (BTC), Ether (ETH), and XRP. With the addition of USDC, SBI VC Trade strengthens its offerings, providing users with access to one of the most widely used stablecoins in global cryptocurrency markets.

The introduction of USDC trading on SBI VC Trade signals Japan’s increasing openness to digital assets and blockchain technology. As regulatory frameworks continue to evolve, Japan could emerge as a key market for stablecoin adoption, facilitating faster and more efficient financial transactions within its economy.

The integration of USDC into SBI VC Trade’s platform represents a pivotal moment for stablecoins in Japan. With regulatory approval in place and a gradual rollout planned, SBI VC Trade is set to lead the charge in Japan’s stablecoin adoption. As Japan’s financial authorities continue to refine their stance on digital assets, the move could pave the way for broader cryptocurrency adoption across the country’s banking and financial sectors.

In related news, crypto security analyst and Paradigm adviser ZachXBT has ignited discussions in the blockchain space by suggesting that the presence of stablecoins from major issuers like Circle, Tether, and Paxos is a key metric for determining a blockchain’s legitimacy. His remarks followed an announcement by US President Donald Trump on March 2, in which he revealed plans to include select digital assets in the country’s strategic crypto reserves. The list of assets comprised Bitcoin (BTC), Ether (ETH), XRP, Solana (SOL), and Cardano (ADA).

On March 3, ZachXBT pointed out that neither Cardano nor the XRP Ledger (XRPL) currently hosts a supply of major stablecoins. He argued that if stablecoin issuers identified real economic value on these networks, they would have already integrated their stablecoins into them.

According to ZachXBT, the presence of USDC, USDT, and Paxos stablecoins on a blockchain is a strong indicator of its legitimacy, as these issuers would naturally gravitate toward networks that offer substantial financial activity and adoption potential. The absence of these major stablecoins on Cardano and XRPL, he suggested, raises questions about their real-world utility and adoption.

Cardano Foundation CEO Frederik Gregaard responded to these remarks in a statement, dismissing the notion that stablecoin circulation alone determines a blockchain’s legitimacy. Gregaard emphasized that legitimacy in blockchain is multifaceted and should be measured by factors such as security, decentralization, sustainability, development activity, real-world utility, and community engagement.

Gregaard also pointed out that while major stablecoins like USDT and USDC are not natively issued on Cardano, they can still be utilized through the Wanchain Bridge. He noted that as Cardano’s transaction adoption and technical capabilities expand, major stablecoin issuers will likely take greater interest in integrating their assets into the network.

“As transaction adoption increases and our capabilities expand, we anticipate growing interest from major stablecoin issuers, reflecting the maturity of the Cardano blockchain,” Gregaard stated.

Additionally, he expressed the foundation’s openness to collaborating with stablecoin issuers to attract more stablecoins to the ecosystem.

Despite the lack of direct stablecoin issuance from Circle, Tether, or Paxos, both the Cardano and XRP Ledger ecosystems have developed their own stablecoin offerings.

In December 2024, Ripple introduced RLUSD, a stablecoin that was approved by the New York Department of Financial Services. RLUSD is already being traded on exchange platforms such as Uphold, MoonPay, Archax, and CoinMENA, with Ripple President Monica Long confirming plans to expand its availability to major exchanges.

Similarly, Cardano has made strides in the stablecoin sector with the launch of Djed (DJED) in 2022. DJED is an overcollateralized stablecoin backed by ADA and uses Shen (SHEN) as a reserve asset. As of early 2024, Cardano also integrated the fiat-backed stablecoin USDM, which was hailed by the Cardano community as a major milestone.

Chris Larsen’s XRP Holdings and the Market Impact

ZachXBT also turned his attention to Ripple’s co-founder, Chris Larsen, revealing that wallet addresses linked to Larsen still hold approximately 2.7 billion XRP, valued at around $7.12 billion at current market prices. The revelation has sparked speculation over potential market impacts, particularly in light of past transactions from these wallets.

According to ZachXBT, these wallets transferred roughly $109 million worth of XRP to exchanges in January, suggesting that additional sales could be on the horizon. However, he also noted that some of these addresses have remained dormant for over six years, leading to speculation that Larsen may have lost access to some of the funds or transferred them as early as 2013.

Notably, in January 2024, Larsen suffered a major security breach when hackers stole 213 million XRP, valued at approximately $112.5 million at the time. 

The debate surrounding stablecoins and their role in blockchain legitimacy highlights a key division in the crypto industry. On one hand, proponents of stablecoin-centric metrics argue that liquidity and integration with top stablecoins are necessary indicators of a blockchain’s adoption and utility. On the other, industry leaders like Gregaard believe that legitimacy should be assessed through a broader set of criteria.

While XRP Ledger and Cardano may lack direct support from major stablecoin issuers, their ongoing developments in the stablecoin space suggest that both networks are positioning themselves for future integration. As the cryptocurrency landscape continues to evolve, stablecoins will likely play an increasingly important role in shaping the competitive dynamics of blockchain ecosystems.