SBI VC Trade Introduces USDC Lending Service in Japan

SBI Holdings’ crypto unit, SBI VC Trade, has launched a retail USDC lending service in Japan that lets customers lend Circle’s USDC stablecoin to the platform under fixed-term agreements in return for interest.

Key features
- Each offering is capped at 5,000 USDC per applicant.
- The product is structured as a loan to SBI VC Trade, not as a bank deposit, so users bear direct counterparty risk.
- SBI VC Trade said it may re-lend the borrowed USDC as part of its operations.
- Funds cannot be withdrawn or transferred during the fixed lending term, limiting users’ ability to respond to market moves.

Risks and protections
- Unlike bank deposits, assets lent through this service are not protected by segregation rules and may not be fully recoverable if the firm becomes insolvent.
- SBI provided a translated table comparing tax treatment of USDC lending to foreign currency deposits, highlighting differences in tax treatment versus traditional deposit products.

Context and rollout
- The product makes a consumer-accessible USDC yield option available on a licensed domestic platform, part of broader efforts in Japan to expand stablecoin use.
- SBI first disclosed plans for a USDC lending product in November and said it was also exploring exchange-traded fund offerings.
- SBI began a full-scale USDC launch in Japan on March 26, 2025, after receiving regulatory approval earlier that month; Circle said that approval made USDC the first approved global dollar stablecoin for use in Japan.

Related developments
- On Aug. 22, SBI formed a joint venture with Circle to promote USDC adoption and develop digital finance use cases in Japan.
- On Dec. 16, SBI announced a partnership with Startale to develop a regulated yen-denominated stablecoin aimed at tokenized assets and cross-border settlement, with a planned launch in the second quarter of 2026.