Circle, Nomura sign July 14 MOU to bring USDC payments to Japan

Circle, the issuer of the USDC stablecoin, signed a memorandum of understanding with Nomura on July 14 to bring USDC payment solutions to Japan, aiming to accelerate cross-border transactions in the world's fourth-largest economy.

"The partnership will accelerate the adoption of digital dollar payments in Japan, a market with significant demand for efficient cross-border settlement," a Circle spokesperson said. Nomura confirmed the agreement in a statement but did not disclose financial terms or a launch timeline.

The MOU covers the development of USDC-based payment infrastructure leveraging Nomura's financial network, which spans retail brokerage, asset management, and investment banking. Japan processed more than $200 billion in cross-border payments in 2025, according to Bank of Japan data, a market where stablecoins could reduce settlement times from days to seconds. USDC, the second-largest stablecoin by market capitalization at roughly $35 billion as of mid-2026, according to DefiLlama, maintains a 1:1 peg to the US dollar backed by cash and short-term Treasury reserves.

The deal positions USDC to compete in a Japanese stablecoin market that remains nascent but is attracting global issuers. Japan's Financial Services Agency has signaled it will finalize stablecoin rules by early 2027, creating a window for first movers to establish market share before the framework locks in compliance requirements. The partnership also signals growing institutional acceptance of stablecoins in regulated markets, following similar moves by competitors in Europe and the US.

Why Japan matters for stablecoins

Japan's stablecoin regulatory framework, enacted under the 2023 amended Payment Services Act, requires issuers to maintain full fiat backing and segregate user funds — standards that align with Circle's existing reserve practices. Finance Minister Satsuki Katayama said on July 10 that the government wants to consider lifting restrictions on cryptocurrency ETFs, signaling a broader shift toward digital asset integration.

Nomura's digital asset subsidiary, Laser Digital, already offers crypto trading and custody services, giving the partnership an operational foundation for rolling out USDC-based payments to corporate clients. The bank's involvement provides Circle with a distribution channel into Japan's institutional market, where demand for dollar-denominated digital assets has grown as Japanese investors seek yield outside the country's low-interest-rate environment.

Competitive implications

The Circle-Nomura partnership follows similar moves by other stablecoin issuers seeking to establish a presence in Asia, where cross-border trade and remittance flows create natural use cases for dollar-pegged tokens. Japan's stablecoin market remains small relative to the US and Europe, but the country's role as a major trading partner with the US and other dollar-based economies makes it a strategic entry point for USDC.

The success of the initiative will depend on how quickly Nomura can integrate USDC into its existing payment rails and whether Japanese regulators impose additional requirements on foreign stablecoin issuers. The FSA's forthcoming rules will determine whether USDC can be used for domestic payments or will be limited to cross-border use cases, a distinction that will shape the partnership's revenue potential.

This article is for informational purposes only and does not constitute investment advice.