SBI VC Trade Launches Licensed USDC Lending Service in Japan, Stablecoin Moving Toward Yield-Generating Applications

Japanese financial group SBI Holdings’ cryptocurrency asset trading platform SBI VC Trade announced that starting March 19, 2026, it will officially launch the “USDC Lending” borrowing service, allowing users to lend USDC stablecoins to the platform and earn returns over the agreed period.
The company states that this is the first such service targeting stablecoins offered by a licensed operator in Japan. The initial offering provides a 12-week cycle with an annualized starting interest rate of 10%. Once normalized, the expected ongoing rate is around 5% annually. This not only introduces a new dollar asset income option to the Japanese retail market but also extends the role of stablecoins in Japan from “tradeable digital dollars” to “usable digital financial tools.”

Image source: SBI VC Trade

According to SBI VC Trade’s announcement, this new service is essentially a consumer lending transaction, where users lend their USDC to the platform, which then returns the principal and earnings in USDC upon maturity. The initial offering lasts 12 weeks with an annualized rate of 10%, with plans to provide an approximate 5% annual return during normal periods. Each account can apply for up to 5,000 USDC per round of fundraising, and early termination is generally not allowed.

The company emphasizes that this product is not a foreign currency deposit, nor is it covered by deposit insurance or typical bank-like protections. Users must bear the platform’s credit risk and the price volatility during the holding period.

SBI clearly positions this product as: on one hand, packaging USDC as a more understandable “dollar yield tool”; on the other hand, attempting to extend stablecoins from a simple trading medium to a more traditional financial application.
The announcement also compares it to common Japanese dollar time deposits, noting that typical dollar deposits offer annual interest rates roughly between 0.01% and 4%, while USDC Lending, under market conditions, could provide higher yields.
The key to stablecoin development in Japan lies in legislation first, then market opening
Looking at SBI’s new service within the broader industry context, it’s clear that the global role of stablecoins has rapidly evolved. Visa’s latest stablecoin page states that the total circulating supply of stablecoins worldwide has exceeded $272 billion, with a 12-month adjusted global transaction volume of $10.2 trillion, indicating that stablecoins are no longer just a hedging tool in the crypto market but are increasingly becoming essential infrastructure for cross-border payments, on-chain settlements, and digital dollar circulation.
Earlier this year, Circle also reported that USDC’s on-chain transaction volume reached $9.6 trillion in Q3 2025, a 680% increase year-over-year, reflecting that stablecoin applications are expanding from exchange scenarios into institutional finance, payment clearing, and capital markets. This is why major institutions like Visa, Circle, and several large financial firms have recently regarded stablecoins as a crucial part of the “native internet financial system.” SBI’s USDC yield service is not an isolated event but a localized microcosm of the global stablecoin shift from “crypto product” to “financial product.”

Japan’s market attention stems from its markedly different development path compared to many other markets: instead of rapid growth followed by regulation, Japan first establishes a legal framework and then gradually opens the market. The Financial Services Agency (FSA) explains that the basic principle for “digital-money type stablecoins” is that they must be linked to fiat currency value, promise redemption at face value, and be issued by banks, money transfer operators, or trust companies. They must also clearly specify redemption rights and comply with AML/CFT standards.
In contrast, algorithmic stablecoins like Terra or stablecoins without fiat redemption features are classified as general crypto assets in Japan, not protected under the specific stablecoin regulations.

Japan’s landmark progress: USDC leads the way
After amending laws in 2022, Japan completed the relevant regulations and implementing orders in 2023, officially bringing stablecoins and their circulation intermediaries under regulation, and adding “Electronic Payment Instruments” and their service providers to the framework. The FSA also incorporated stablecoin transfers into AML/CFT measures such as the Travel Rule, KYC, and suspicious transaction reporting, clearly indicating that stablecoins can be legally recognized as long as they are embedded within a regulated financial system.

Under this framework, a concrete milestone in Japan’s stablecoin market was SBI VC Trade obtaining the relevant license and becoming the first to introduce USDC. In March 2025, SBI VC Trade registered as an “Electronic Payment Instruments Exchange Service Provider,” making it the first in Japan to be licensed to handle stablecoins. Subsequently, Circle announced a partnership with SBI, officially launching USDC circulation in Japan on March 26, 2025.

This essentially resolves the “legality” issue of stablecoins in Japan, and the next phase is “adoption,” moving from a few licensed intermediaries’ compliant circulation to broader use across more trading platforms, payment scenarios, and corporate treasury management.