Key facts
- Circle and Nomura are partnering to launch a corporate payment and settlement service in Japan using USDC.
- The service is slated for launch as early as 2027.
- It aims to reduce foreign exchange transfer times from days to minutes using blockchain technology.
- Japan's updated payment rules have cleared USDC for local corporate use.
- Nomura will manage client onboarding, regulatory compliance, and integration with existing banking systems.
Circle, the issuer of the USDC stablecoin, and Nomura Holdings, Japan's largest investment bank, are joining forces to introduce a digital asset settlement and corporate payment service in Japan, with a planned launch as early as 2027. This initiative aims to tap into Japan's substantial import, export, and corporate currency markets by leveraging blockchain technology to significantly reduce the time required for cross-border and foreign exchange transactions, from the current two to three business days down to minutes.
The partnership follows recent updates to Japan's payment regulations, which have cleared Circle's USDC for use by local corporations, making it the first global dollar stablecoin permitted for such purposes. Nomura will be responsible for client onboarding, ensuring regulatory compliance, and integrating the new service with existing banking infrastructure. Circle operates its Japanese network through its local branch, Circle Japan.
This move is part of Japan's broader effort to establish a regulated framework for stablecoins and digital assets. The country has already amended its Payment Services Act to allow licensed entities to issue regulated stablecoins, and proposed changes to the Financial Instruments and Exchange Act could further enhance the crypto landscape with potential for crypto ETFs and improved tax treatment.