Circle and Nomura are building a stablecoin-based foreign exchange settlement system for Japanese corporations, targeting a 2027 launch that could reshape how companies in the world's fourth-largest economy move money across borders.
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Circle and Nomura partner for Japan corporate FX stablecoin settlement by 2027
Circle and Nomura are building a stablecoin-based foreign exchange settlement system for Japanese corporations, targeting a 2027 launch that could reshape how companies in the world's fourth-largest economy move money across borders.
Circle, the issuer of the $74 billion USDC stablecoin, is working with Nomura to enable instant settlement of foreign currency for Japanese companies as early as 2027, Nikkei reported Thursday. The partnership aims to use regulated stablecoins to settle cross-border payments in real time, bypassing the traditional correspondent banking network that can take one to three business days to clear.
"Stablecoin transactions are expected to stimulate cross-border investment and trade by reducing settlement times and costs," a person familiar with the partnership told Nikkei.
Japan has been one of the first major economies to establish a legal framework for stablecoins, allowing banks, trust companies and licensed money transfer providers to issue regulated tokens under the Payment Services Act. The framework, enacted in 2023, created a clear pathway for foreign-issued stablecoins like USDC and, more recently, Ripple's RLUSD to operate within the country's borders after receiving approval from the Financial Services Agency.
The partnership comes as Japan's regulatory environment for digital assets undergoes a broader transformation. Earlier in June, the country's Lower House passed a bill that would bring crypto assets under the Financial Instruments and Exchange Act, potentially opening a path to exchange-traded funds and lowering the capital gains tax on crypto from 55% to a flat 20% rate. The shift would bring digital assets closer to the regulatory treatment of traditional financial products, including disclosure requirements and insider trading restrictions.
Corporate Demand Meets Regulatory Clarity
The Nomura-Circle partnership targets a gap in Japan's corporate finance infrastructure. Japanese companies conducting cross-border transactions currently rely on a correspondent banking system that introduces settlement risk and ties up capital during the clearing window. Stablecoin-based settlement would allow near-instant finality, reducing counterparty risk and freeing working capital.
A survey of 518 Japanese investment professionals conducted by Nomura and its digital asset subsidiary Laser Digital in April found that 63% see practical uses for stablecoins, including treasury management and cross-border payments. However, the same survey revealed a trust gap: respondents preferred stablecoins issued by major financial institutions over those from crypto-native firms, a dynamic that favors the Nomura-Circle partnership over rival offerings.
The partnership also positions Nomura to compete with SBI Group, which has been the dominant force in Japan's regulated crypto market. SBI launched Ripple's RLUSD stablecoin on its VCTRADE platform after JFSA approval, and simultaneously rolled out its own yen stablecoin, JPYSC, with no transaction cap. SBI is also among Japan's three largest banks building a shared yen stablecoin targeting a 2027 launch — the same year Circle and Nomura aim to go live.
USDC's Institutional Edge in Japan
USDC, with a market capitalization of about $74 billion, is the second-largest stablecoin globally behind Tether's $186 billion USDT. Unlike USDT, which has not received JFSA approval, USDC entered Japan in March 2025 through a partnership with SBI VC Trade, giving Circle a head start in the regulated Japanese market.
The partnership with Nomura extends Circle's reach beyond retail exchange listings into the corporate treasury and cross-border payment segment, where transaction sizes and margins are larger. For Nomura, Japan's largest investment bank, the stablecoin initiative provides a digital asset product for its corporate client base without the volatility of unbacked cryptocurrencies.
The yen's recent weakness — trading near 161 per dollar, close to its weakest level in nearly 40 years — adds a macroeconomic tailwind for dollar-denominated stablecoin adoption in Japan. Japanese companies holding yen-denominated cash face a depreciating domestic currency, making dollar-pegged instruments like USDC more attractive for treasury management.
Whether the 2027 target holds depends on technical integration with Japan's banking infrastructure and final regulatory approvals under the evolving Financial Instruments and Exchange Act framework. Both Circle and Nomura have declined to disclose the specific technology architecture or whether the settlement system will run on public blockchains or a permissioned network.
This article is for informational purposes only and does not constitute investment advice.
