SBI VC Trade has introduced a USDC lending service in Japan, offering users a new investment avenue while highlighting the distinct risks compared to traditional deposits.
SBI VC Trade, the digital asset arm of SBI Holdings, announced it will launch a USDC lending service in Japan on Thursday, allowing retail users to lend the stablecoin to the platform under fixed-term agreements to earn returns.
SBI stated the product aims to offer an alternative to traditional dollar deposits in Japan. However, unlike bank deposits, user assets are not segregated and may not be fully recoverable in the event of bankruptcy. Furthermore, users cannot withdraw or transfer funds during the fixed lending period, limiting their ability to react to market conditions.
SBI Expands Market Reach for Stablecoins