Partnership aims to streamline cross-border payments for Japanese companies
Circle and Nomura are partnering to enable instant foreign exchange settlement for Japanese companies as early as 2027, according to reporting from Nikkei. The service would allow companies to convert yen into dollar-denominated stablecoins, bypassing traditional banking delays tied to operating hours and time zone differences.
The partnership arrives as Japan’s regulatory environment for digital assets solidifies. Japan’s Lower House passed a bill in June 2026 to reclassify digital assets under the Financial Instruments and Exchange Act, a shift that could enable crypto exchange-traded funds and lower tax treatment on crypto holdings. The country has already established a legal framework for stablecoins under the Payment Services Act, permitting banks, trust companies, and licensed money transfer providers to issue regulated tokens.
Circle, the issuer of USDC (the world’s second-largest stablecoin with a $73.8 billion market capitalization), would be a natural partner for dollar-denominated settlement. Nomura, Japan’s largest investment bank, brings institutional credibility and existing relationships with the companies expected to use the service.
The timing reflects broader momentum in Japan’s stablecoin ecosystem. SBI Holdings and Startale Group announced JPYSC, a trust bank-backed yen stablecoin for institutional and cross-border settlement, earlier this month. Ripple USD, the world’s 10th-largest dollar stablecoin by market capitalization, officially launched in Japan, signaling growing appetite for regulated, blockchain-based settlement tools in the region.
Japan’s tax framework for crypto assets is also shifting. Currently, digital asset gains face a 55% capital gains tax rate. The June 2026 bill proposes flattening that to 20%, potentially lowering barriers to institutional adoption.
Circle and Nomura did not respond to requests for comment by press time, according to Cointelegraph’s reporting. The companies have not disclosed which specific Japanese firms will participate in the pilot or confirmed settlement speeds and transaction fees. The exact stablecoin denomination for the partnership also remains unspecified.
Regulatory backdrop
Japan has positioned itself as a regulated crypto jurisdiction following the Payment Services Act framework. The June 2026 legislative push extends that posture by bringing digital assets under securities law, a move that mirrors regulatory approaches in other Group of Seven economies.
The Circle-Nomura partnership, if confirmed with full operational details, would represent one of the first institutional stablecoin settlement corridors launched by a major investment bank in a Group of Seven nation. The 2027 target suggests a phased rollout, though neither party has disclosed infrastructure timelines or pilot scope.
