SBI VC Trade has become the first firm in Japan to receive regulatory approval to handle stablecoins. The exchange plans to start processing USDC transactions on March 12.
According to a report by CoinDesk Japan, SBI Group’s crypto trading firm has become the first Japanese firm to gain approval for an “electronic payment instrument business operator” license. The firm is registered at the Kanto Regional Financial Bureau with registration number No. 00001.
After receiving the license, SBI VC Trade plans to start facilitating transactions for Japanese customers through the Circle-issued stablecoin, USD Coin (USDC), on March 12. However, the firm noted that the stablecoin service will remain in the beta phase and distribution will be restricted to only a few customers within the group.
Once the stablecoin service becomes available to the public, SBI VC Trade will be able to offer services that will enable individual and corporate customers to buy and sell as well as deposit and withdraw USDC.
Because the stablecoin is pegged to the U.S. dollar, SBI VC Trade will need to stock up on U.S. dollars, securing an amount that is equal to or greater than the amount of USDC deposited by customers.
CEO of SBI VC Trade, Tomohiko Kondo stated that Shinsei Trust Bank, a member of the SBI Group, will be responsible for the firm’s trust security. He said by the time of the beta launch, users will be able to see “USDC” displayed on the firm’s trading platforms.
The stablecoin will be available to trade with spot trading pairs including BTC/USDC and ETH/USDC pairs. Leveraged trading with USDC is also expected to be included on the trading platform.
“We will first check the business flow. We want to launch it in earnest as soon as possible,” he said in a translated statement.
At press time, SBI VC Trade is the only Japanese firm that holds all three operating licenses: a cryptocurrency exchange business license, the financial instruments business type 1 license, and theelectronic payment instruments trading business license.
Last February, the Japanese Financial Services Agency approved a report which included a reform that would allow for stablecoins to be backed by short-term government bonds and fixed-term deposits in addition to demand deposits.
In addition, the proposal also recommended an upper limit of 50% on the bonds and deposits that can be used as collateral for stabelcoins.
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