What to know:
- SBI to launch USDC lending in Japan, offering fixed-term returns for retail users.
- USDC lending is capped at 5,000 per user, structured as loans with counterparty risk.
- Fixed-term model restricts withdrawals, limiting liquidity and response to markets.
SBI Holdings’ digital asset arm, SBI VC Trade, plans to launch its USDC lending product in Japan this Thursday. The product enables retail customers to lend stablecoins with fixed-term returns.
This represents another product launch in Japan’s growing digital asset space. The announcement comes as the company continues to expand its regulated stablecoin offerings.
The company said that users can lend USD Coin (USDC) directly to the platform. Each investment will have a limit of 5,000 USDC per user. The users will receive interest on their investment for a specified period. This structure has been set up as a loan rather than a deposit.
SBI USDC Lending Brings Counterparty Risk
This structure exposes users to counterparty risk related to SBI VC Trade. The company has stated that it can re-lend the borrowed USDC in its operations.
This structure is different from traditional banking structures. The users are relying on the stability of the company financially throughout the period of lending.
The company has said that this product will provide an alternative for US dollar deposits in Japan. However, it does not provide any protection related to US dollar deposits. It does not provide segregation for the funds.
The fixed-term model also restricts the flexibility of users. Users are not permitted to withdraw their funds during the period. This restricts the ability of users to respond to market conditions. It also reduces liquidity, unlike other cryptocurrencies.
Source: SBI
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SBI Builds USDC Ecosystem With New Partnerships
The launch follows an announcement from November. In the announcement, SBI VC Trade said that it planned to launch a USDC lending product. It also indicated that it was considering exchange-traded funds, according to Reuters.
The company has been expanding the USDC strategy recently. In March 2025, SBI launched USDC in Japan. This followed approval of the USDC. Japan has approved USDC as the first global dollar stablecoin.
The company has also established strategic partnerships. On August 22, it announced a joint venture with Circle Internet Financial to facilitate adoption. The company also formed a partnership with Startale in December to develop a stablecoin backed by the yen. The stablecoin is set to be launched in the second quarter of 2026.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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