Japan's SBI VC Trade will launch retail USDC loan services to replace traditional dollar deposits

According to Cointelegraph, SBI VC Trade, a digital asset division of SBI Holdings, announced that it will launch USDC lending services in Japan on Thursday, allowing retail users to lend stablecoins to the platform under fixed-term agreements in exchange for returns.

SBI stated that the product is intended to replace traditional dollar deposits in Japan, but unlike bank deposits, its isolation protection measures do not cover user assets and may not allow for full recovery in the event of bankruptcy.

Additionally, users cannot withdraw or transfer funds during the fixed loan term, which limits their ability to respond to market changes.