SBI VC Trade, the digital asset subsidiary of Japanese financial giant SBI Holdings, has officially launched Japan's first licensed stablecoin lending service for retail investors, centered on USD Coin (USDC). The service, which went live on March 19, 2026, allows individual investors to lend their USDC to the platform for a fixed 12-week term and earn an annualized interest rate of 10% on the initial offering.
The launch follows SBI's full-scale commercialization of USDC in Japan in March 2025, which required and received explicit regulatory approval from Japan's Financial Services Agency (FSA). The service operates under the country's amended Payment Services Act, which established a clear legal framework for stablecoins as digital payment instruments in 2023. This regulatory-first approach involves rigorous compliance checks, including anti-money laundering protocols, consumer protection measures, and reserve verification.
The service offers a significantly higher yield compared to traditional US dollar time deposits in Japan, which typically range from 0.01% to 4% annually, with rare preferential rates up to 5%. Under normal market conditions after the initial offering, SBI VC Trade plans to offer USDC lending at around 5% annually. Retail customers can lend up to 5,000 USDC per offering, with applications approved sequentially and each account limited to a single offering.
Notably, the service provides potential tax advantages for small-scale investors. Profits from USDC lending are classified as miscellaneous income under Japanese tax law and can remain tax-free if the annual total is under 200,000 yen, unlike foreign currency deposits which are subject to a flat 20.315% withholding tax.
The launch strengthens the strategic partnership between SBI and Circle, the principal issuer of USDC. The two companies announced a collaboration framework in late 2024 focused on expanding USDC utility across Asian markets. This lending service represents the first major consumer-facing product from that partnership.
From a security perspective, the platform utilizes institutional-grade custody solutions with multi-signature wallet technology, real-time monitoring systems, blockchain analytics for compliance, and maintains comprehensive insurance coverage for assets held in custody. However, the service carries counterparty risk as USDC borrowed through the service can be subleased by SBI VC Trade, and funds are not segregated. Customers also cannot terminate contracts early, limiting liquidity in exchange for fixed-term returns.
Industry analysts anticipate this launch will influence several market segments, potentially accelerating digital asset service roadmaps for other traditional Japanese financial institutions and prompting competing cryptocurrency exchanges to enhance their regulated product offerings. SBI VC Trade has indicated plans for additional stablecoin-related services throughout 2025, including cross-border payment solutions and institutional lending products.
