In an X post, Jeremy Allaire, CEO of stablecoin issuer Circle, announced that the company had received permission to market USDC in Japan. Hence, it became the first and only international USD-pegged digital currency to be accepted in Japan.
Also, the SBI cryptocurrency exchange is the only company authorized to list and issue USDC to Japanese investors. SBI said in a post that it will allow USDC trade for a small group of users on March 12th and will launch a full-scale service as quickly as possible.
Japan approved a stablecoin bill in June 2022, recognizing the tokens as a digital currency. The law, which took effect in 2023, mandates that these virtual coins be tied to the yen or equivalent valid currency and that holders be able to use them at their actual value.
Coinbase And Circles Partnership Influenced USDC Stablecoin Approval
Japan’s financial regulator (the Financial Services Authority, FSA) reports that laws relevant to stablecoin issuers will become effective in the upcoming months. The law also stipulates that only licensed banks, authorized money transfer agencies, and trust businesses can issue certified stablecoins.
Dante Disparte, head of global policy at Circle and the company’s chief strategy officer, stated that when Japan initially adopted this legislation, it was an established standard and example of smart policy. He added that he hoped more nations would adopt a similar, well-rounded approach to stablecoin legislation.
The Japan USDC announcement follows Coinbase CEO Brian Armstrong’s statement a few weeks ago that one of the firm’s “stretch goals” is to catch up to USDC’s rival, USDT. Coinbase and Circle established the Center Consortium in 2018 to manage the issuance of USDC.
When Coinbase dissolved the Center Consortium and purchased a minority share in Circle in 2023, it became more involved with the stablecoin. But before USDC can catch up with USDT, Circle still has a lot of work to do.
With a market capitalization of $142B, USDT is the third-largest cryptocurrency, according to on-chain data.
Ethena Labs (USDe) Braces Up As Stablecoin Competition Intensifies
As the stablecoin competition intensifies, Ethena Labs’ USDe keeps taking steps to establish itself as the best substitute for USDC and USDT. Unlike other stablecoins, such as Tether’s USDT and Circle’s USDC, Ethena Labs’ USDe uses a hedge strategy backed by cryptocurrency.
It also offers USDe investors a 9% yield. According to a recent tweet from Bybit, one of the biggest exchanges in the market, its users can now mint, redeem, and gain USDe on Bybit On-chain earn, a campaign currently in progress.
Ethena Labs tweeted to celebrate the partnership, stating that the new development enables Bybit customers to mint and redeem USDe directly without leaving the platform.
Bybit Teams Up with Ethena Labs for Broader Adoption of the USDe Stablecoin
According to the Ethena Labs’ tweet, holders of all categories can easily switch between USDe and various stablecoins. This feature perfectly supports Bybit USDe holders’ capacity to earn incentives for holding USDe and utilizing it as derivatives margin collateral.
Ethena Labs concluded the tweet by emphasizing its and Bybit’s dedication to developing cutting-edge user experiences and enhancing users’ capital efficiency. There’s been a noticeable surge in USDe’s user base due to the Bybit integration, increasing its competitiveness among other stablecoin competitors, which is becoming more intense as the cryptocurrency industry’s widespread adoption grows.
MEXC Exchange Promotes USDe Staking
As part of a larger initiative to encourage USDe development and adoption, the MEXC cryptocurrency exchange invested in Ethena last month. The exchange also established a $1 million reward pool to promote USDe trade and staking, as Bybit did.
Tracy Jin, the exchange’s chief operational officer, believes that stablecoins play a pivotal role in encouraging the use and adoption of cryptocurrencies. Based on market capitalization, USDe is the third-largest stablecoin, with a circulating supply of around $5.4 billion.
