Circle, Nomura pilot USDC FX settlement for Japan corporates

Circle and Nomura plan a pilot to let Japanese companies convert yen into dollar-denominated stablecoins for near-instant cross-border foreign exchange settlement, with a target start in 2027.

Under the proposed service, corporate clients would convert yen into a dollar stablecoin, likely USDC, and use the token for business-to-business payments and settlement. Tokenizing dollars on a blockchain would enable settlement outside traditional banking hours and reduce delays from time-zone differences.

Circle issues USDC, which has a market capitalization of about $73.8 billion. Nomura, Japan’s largest investment bank, would provide access to its corporate client base and conventional FX services, while Circle would supply on-chain dollar liquidity and stablecoin infrastructure.

Project leaders expect the pilot to introduce a major dollar stablecoin into Japan’s corporate FX market. Any broader rollout would depend on corporate demand and regulatory approvals.

Stablecoin activity in Japan has accelerated. SBI Holdings and Startale Group have announced JPYSC, a yen-backed stablecoin for institutional and cross-border settlement, and a dollar-pegged stablecoin has recently launched locally for business use.

Under current law, banks, trust companies and licensed money transfer providers can issue regulated tokens under the Payment Services Act. Authorities are moving to place digital assets under the Financial Instruments and Exchange Act; a Lower House bill would move crypto assets into that framework, enable exchange-traded products, tighten disclosure and oversight, and change the tax treatment of crypto gains from a 55% top rate to a 20% flat rate.

Market participants say regulated stablecoins could allow on-demand conversion and settlement outside regular banking hours. Practical deployment will require integration with corporate treasury systems, bank on- and off-ramps, and compliance with domestic and cross-border regulations.

Neither Circle nor Nomura responded to requests for comment.