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Circle and Nomura Launch Digital Currency Service for Japan's Forex Market

USDC is getting a regulated role in Japan for business payments and currency transactions. Nomura is tying the service into banking systems after approval from the Financial Services Agency.

By Mike Hesp
• 2 min read
Circle and Nomura Launch Digital Currency Service for Japan's Forex Market

Key Takeaways

  • Circle and Nomura are launching a digital asset settlement service in Japan for business payments with USDC.
  • Japanese companies will be able to swap yen for USDC for cross-border payments and currency transactions.
  • The service is expected to be available in 2027, after more work on infrastructure, custody, and bank integration.

Circle Internet Financial in Boston is teaming up with Nomura Holdings to launch a digital asset settlement business in Japan. The partnership is focused on offering a business payment service using the USDC stablecoin, which is expected to be available to Japanese companies as early as 2027.

Target Audience and Market Potential

The service will let Japanese companies exchange yen for USDC, a stablecoin backed by the U.S. dollar. That would allow them to make cross-border payments to suppliers, move money between overseas subsidiaries, and handle currency transactions. According to Bank for International Settlements data, daily trading volume in Japan's forex market was about $440 billion in 2025. Current bank transfers often take two to three business days, while the blockchain-based solution could cut that transaction time significantly.

Regulation and Implementation

The partnership follows recent legal changes in Japan. The Financial Services Agency has approved USDC under the updated payment rules, making it the first global dollar stablecoin allowed for local business use. Circle operates through its Japan unit, Circle Japan, which already works with SBI Holdings on distribution. Nomura is responsible for onboarding customers, meeting regulatory requirements, and connecting the platform to existing banking systems. Over the next year, the partners will continue building out the infrastructure, handling custody, and finishing bank integrations ahead of the planned launch.

Context of Japan's Forex Market

Japan's forex market is dominated by major banks like MUFG, Mizuho, and SMBC, which together with international investment banks handle about 70 to 75 percent of currency trading. Japan is dealing with a weak yen, partly because of its heavy reliance on energy imports and rising oil prices, which are adding inflation pressure. The Bank of Japan raised interest rates to 1 percent in June 2026, a major policy shift after years of extremely low rates. These developments form the backdrop for Circle and Nomura's digital currency service rollout, which could help make forex transactions more efficient and faster in a complex market environment.

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