Circle, the issuer of the USDC stablecoin ($73.8 billion market cap), alongside Japanese financial heavyweight Nomura, has announced plans to roll out an instant foreign exchange settlement service for Japanese corporations by 2027. The service will allow companies to convert funds into a dollar-pegged stablecoin for cross-border transactions, bypassing delays caused by traditional banking hours and time zone differences.
Cross-border Payments: Circle-Nomura Targets Real-Time Settlement by 2027
According to media reports, the proposed infrastructure would let Japanese firms instantly convert yen or other currencies into a dollar stablecoin (likely USDC) and settle cross-border payments on-chain. Traditional corporate cross-border payments can take days due to banking hours and intermediary processing. Circle and Nomura aim to eliminate that friction with near-instant settlement, particularly for intercompany payments. The report highlights major efficiency gains for corporate treasury management.
As of press time, neither Circle nor Nomura has issued an official statement regarding the partnership.
Japan's Stablecoin Regulation Accelerates: Banks and Trusts Authorized to Issue Tokens
Japan has become one of the first major economies to establish a clear legal framework for stablecoins. Under the Payment Services Act, banks, trust companies, and licensed money transfer operators can issue regulated tokens. This week, SBI Holdings and Startale Group launched JPYSC, a yen-backed stablecoin for corporate and cross-border use. Meanwhile, Ripple USD also became available in Japan.
The Circle-Nomura initiative marks the entry of one of the world's largest dollar stablecoins into Japan's institutional forex market, likely boosting stablecoin adoption for intercompany payments.
Tax Reform and ETF Legislation: Next Frontier for Digital Assets
Japanese regulators are also reassessing the legal status of crypto assets. Currently governed by the Payment Services Act, there are moves to bring digital assets under the Financial Instruments and Exchange Act, aligning them with traditional financial product regulation.
Proposed tax reforms include cutting the capital gains tax on crypto from a high of 55% to a flat 20%. These changes are seen as vital for attracting corporate interest and expanding digital asset investment vehicles in Japan.