Circle, Nomura Plan Instant Stablecoin FX Settlement for Japanese Companies

Circle Internet Group, the world’s second-largest stablecoin company, plans to launch an instant foreign-currency settlement service for Japanese companies with Nomura Holdings, Nikkei reported on June 26.

The companies aim to introduce the service next year. The key feature is the use of blockchain technology to settle large foreign-exchange transactions instantly, cutting a process that now can take about half a day.

That would speed the movement of funds for cross-border investment and business-to-business transactions, potentially broadening Japanese companies’ use of international financial services.

Stablecoins are digital assets pegged to fiat currencies such as the dollar. They are faster and cheaper for cross-border transfers than international remittances routed through banks. Circle issues USD Coin, or USDC, a dollar-pegged stablecoin with a market value of about $74 billion.

The move would mark the first full-scale entry by a major global stablecoin company into Japan’s corporate market. Nikkei said it reflects how expansion of the U.S.-led stablecoin market, spurred by the 2025 Genius Act, is spreading into Japan’s financial sector.

Under the service, companies would be able to convert yen into dollar-based stablecoins and use them for overseas investment and instant remittances. Nomura is also studying a financial system with Circle that could eventually allow real-time settlement of stock and bond transactions.

Large corporate foreign-exchange conversions through financial institutions now can take roughly half a day because of time differences and other factors. As a result, companies and institutional investors have had to keep a certain amount of foreign currency on hand to guard against unexpected shortages.

Instant access to foreign currency through stablecoins would reduce the burden of idle funds and improve treasury efficiency. Banks and other financial institutions are also expected to be major users.

Japanese financial institutions currently use transactions that procure dollars against Japanese government bonds as collateral. Shifting that process to a blockchain-based system could sharply speed dollar funding. If banks improve their foreign-currency funding capacity, companies would also find it easier to secure funds for overseas needs.

Stablecoins could eventually be used to settle international trade payments for manufacturers and other non-financial companies. McKinsey estimates annual real-world stablecoin payments at $390 billion.

If stablecoin use expands in global commerce, Japanese companies would gain access to a new financial infrastructure that allows them to convert yen into foreign currencies instantly and send funds to overseas counterparties.

Choi Man-su, Tokyo correspondent, Korea Economic Daily, bebop@hankyung.com