Nomura and Circle Team Up on Stablecoin FX Settlements in Japan

Circle and Nomura are collaborating on a stablecoin-based foreign exchange settlement service for Japanese companies. The service, expected to launch as early as 2027, will convert yen into a dollar-denominated stablecoin for cross-border transactions.

The key benefit of this service is the speed of corporate FX settlement. Currently, bank business hours and time differences between countries can cause delays in payments. This new system aims to reduce these delays by using a regulated blockchain payment network.

Japan's financial institutions are reviewing settlement models that use stablecoins for institutional and cross-border payments. Recent developments include the launch of JPYSC, a yen stablecoin aimed at institutional and cross-border payments, as well as the official introduction of Ripple USD (RLUSD) in Japan.