Stablecoin issuer Circle and Japan’s largest investment bank Nomura have reportedly partnered as early as 2027 to provide instant foreign exchange settlement for Japanese companies.
The service will enable companies to convert yen into dollar-equivalent stablecoins for cross-border transactions and instant settlement, reducing delays caused by banking hours and time zone differences, Nikkei said. Reported on Thursday.
The partnership will bring one of the world’s largest dollar-denominated stablecoins to Japan’s corporate foreign exchange market, expanding the use of stablecoins for business-to-business cross-border settlements.
Circle is the world’s second-largest stablecoin issuer, USDC (USDC), with a market capitalization of $73.8 billion, according to CoinMarketCap. Data shows
Cointelegraph has reached out to Circle and Nomura but had not received a response by press time.
Stablecoin initiatives are gaining momentum in Japan as financial institutions seek regulated blockchain-based settlements. On Wednesday, SBI Holdings and Startale Group announced JPYSC, a trust bank-backed yen stablecoin designed for institutional and cross-border settlement, while Ripple USD (RLUSD), the world’s 10th largest dollar stablecoin by market capitalization, officially started In Japan
Source: the wave
Related: SBI eyes Bitbank deal as Japan’s crypto exchange market stabilizes
Japan comes closer to lower taxes on digital assets, crypto ETFs.
Japan is one of the first major economies to establish a legal framework for stablecoins, allowing banks, trust companies and licensed money transfer providers to issue regulated tokens under the Payment Services Act.
The Payment Services Act also currently governs cryptocurrencies in Japan, but regulators are moving to move digital assets under the Financial Instruments and Exchange Act, which would bring them closer to the regulatory treatment of traditional financial products.
In early June, Japan’s lower house passed a bill that would bring crypto assets under the country’s financial instruments framework, potentially paving the way for exchange-traded funds, lower tax treatment, stricter exchange oversight, disclosure requirements and restrictions on insider trading.
The proposed changes will also reduce the capital gains tax on crypto assets from the current 55% to a flat rate of 20%.
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