Japan’s largest card network JCB and stablecoin issuer Circle have signed a memorandum of understanding to explore using USDC for cross-border payments, merchant transactions, and internal fund transfers, the companies announced July 14.
JCB operates a network of 140 million users and 40 million merchants worldwide. The partnership will initially focus on a proof of concept for JCB’s internal fund transfers, with plans to expand to broader use cases including payments by inbound tourists and merchant settlement.
“Stablecoins are gaining attention around the world as a foundation for creating a new ecosystem in cashless societies, given their high level of convenience,” JCB and Circle said in a joint statement.
USDC, the world’s second-largest stablecoin, has a market capitalization of nearly $73 billion. Circle has committed to partnering with Nomura, a major Japanese financial services company, to develop a USDC-based foreign exchange settlement service for Japanese businesses as early as 2027.
Lawson Pilot Launch
Convenience store chain Lawson will begin accepting stablecoins at stores starting in August, using KDDI’s yen-denominated stablecoin JPYC. The pilot will test stablecoin payments at the retail level, complementing JCB’s broader exploration with Circle.
Tourist Spending and Settlement Efficiency
Inbound tourists visiting Japan typically rely on bank cards for payments but face daily spending limits that stablecoins could circumvent. JCB and Circle identified three potential benefits from the partnership: “reducing the burden of currency exchange for inbound tourists, further improving the efficiency of fund settlement, and improving cash flow for merchants,” the companies stated.
The memorandum represents an early effort by a major card network to integrate stablecoin infrastructure into existing payment rails. JCB did not specify a timeline for completing the proof of concept or rolling out services beyond the initial internal transfer pilot.
Frequently Asked Questions
What did JCB and Circle agree to?
JCB and Circle signed a memorandum of understanding to explore using USDC for cross-border payments, merchant transactions, and internal fund transfers.
How large is JCB's network?
JCB operates a network of 140 million users and 40 million merchants worldwide.
Which retailer is piloting stablecoin payments in Japan?
Convenience store chain Lawson will begin accepting stablecoins in August, using KDDI's yen-denominated stablecoin JPYC.
