Stablecoin issuer Circle and Nomura are preparing a service that would allow Japanese companies to settle foreign exchange transactions using dollar-denominated stablecoins as early as 2027. The proposed service would let companies convert yen into dollar stablecoins for cross-border payments and near-instant settlement, addressing settlement delays caused by banking hours and time zone differences. Japan has established a legal framework for stablecoins under the Payment Services Act, positioning the country as a regulated test market for institutional blockchain-based settlement.
Circle and Nomura Target Dollar Stablecoin FX Settlement
The proposed service would let companies convert yen into dollar stablecoins for cross-border payments and near-instant settlement. The partnership would bring Circle's USDC, the second-largest stablecoin with a market capitalization of about $73.8 billion, into Japan's corporate foreign exchange market. Nomura's involvement gives the initiative a direct link to Japan's institutional finance market.
The service would allow companies to convert local currency into a tokenized dollar asset, transfer it across blockchain rails, and settle the transaction without waiting for traditional banking systems to reopen or reconcile across jurisdictions. For Japanese companies with global suppliers, overseas subsidiaries, or dollar-denominated obligations, stablecoin settlement could offer a faster alternative to traditional payment rails.
Japan Establishes Regulated Stablecoin Framework Under Payment Services Act
Japan has established a legal framework for stablecoins under the Payment Services Act. Under this framework, banks, trust companies, and licensed money transfer providers can issue regulated tokens. SBI Holdings and Startale Group announced JPYSC, a trust bank-backed yen stablecoin designed for institutional and cross-border settlement. Ripple USD, a dollar-denominated stablecoin, has also launched in Japan.
Yen stablecoins are being built for domestic and institutional settlement, while dollar stablecoins are being positioned for cross-border flows and global liquidity. The Circle-Nomura plan would target Japanese companies that need faster access to dollar settlement.
Lower House Passes Crypto Tax Reform Bill
Earlier in June, the Lower House passed a bill that would bring crypto assets under the country's financial instruments framework. The change could open a path to crypto exchange-traded funds, lower tax treatment, tighter exchange oversight, disclosure requirements, and insider trading restrictions.
Japan's current crypto capital gains tax can reach 55%. The new framework would reduce crypto gains tax to a 20% flat rate, bringing the asset class closer to the treatment of conventional financial investments. Policymakers are moving closer to treating crypto assets under the Financial Instruments and Exchange Act rather than only under the Payment Services Act.
SBI Holdings and Ripple Launch Yen and Dollar Stablecoins in Japan
SBI Holdings and Startale Group announced JPYSC, a trust bank-backed yen stablecoin designed for institutional and cross-border settlement. Ripple USD, a dollar-denominated stablecoin, has also launched in Japan. These launches show that Japan's stablecoin market is developing on two tracks: yen stablecoins for domestic settlement and dollar stablecoins for cross-border flows.
The reported 2027 timeline for the Circle-Nomura service gives the market time to adapt. Corporate clients will need legal clarity, operational controls, and integration with existing treasury systems before stablecoin FX settlement becomes routine.
FAQ
What is the Circle-Nomura stablecoin FX service for Japan?
Circle and Nomura are preparing a service that would allow Japanese companies to settle foreign exchange transactions using dollar-denominated stablecoins. The service would let companies convert yen into dollar stablecoins for cross-border payments and near-instant settlement, with a target launch as early as 2027.
What is Japan's current legal framework for stablecoins?
Japan has established a legal framework for stablecoins under the Payment Services Act. Under this framework, banks, trust companies, and licensed money transfer providers can issue regulated tokens. SBI Holdings and Startale Group announced JPYSC, a trust bank-backed yen stablecoin, and Ripple USD has also launched in Japan.
What crypto tax changes did Japan's Lower House pass?
Earlier in June, the Lower House passed a bill that would reduce crypto gains tax from up to 55% to a 20% flat rate. The bill would also bring crypto assets under the country's financial instruments framework, potentially opening a path to crypto exchange-traded funds and tighter exchange oversight.
