Circle Internet Group, the issuer of the second-largest stablecoin by market capitalisation, has partnered with Japanese financial services giant Nomura Holdings to target Japan’s $440 billion daily foreign exchange market using blockchain-based settlement infrastructure.
The partnership, announced on Wednesday, aims to deploy cross-border foreign exchange settlements using Circle’s USD Coin (USDC) as early as 2027. The collaboration marks a significant push by both firms to modernise FX settlement infrastructure using stablecoin technology.
Targeting a massive market
Japan’s foreign exchange market processes approximately $440 billion in daily trading volume, according to the Bank for International Settlements. The market is dominated by traditional banking rails that often involve delays, intermediaries, and higher costs for cross-border transactions.
Circle and Nomura plan to leverage USDC, a dollar-pegged stablecoin, to enable near-instant settlement of cross-border FX transactions. The firms say the technology could reduce settlement times from days to minutes while cutting costs for institutional clients.
Nomura, Japan’s largest investment bank, will provide distribution and regulatory infrastructure, while Circle will supply the stablecoin technology and reserve management. The partnership is subject to regulatory approval from Japan’s Financial Services Agency.
Stablecoins gain ground in traditional finance
The partnership reflects growing institutional interest in stablecoins as a settlement layer for traditional financial products. USDC, which maintains a market capitalisation of over $50 billion, has become a preferred tool for cross-border payments among banks and fintech firms.
Circle has pursued partnerships with traditional financial institutions across Asia, including in Singapore and Hong Kong. Japan, however, represents a particularly strategic market due to its size and regulatory clarity around digital assets.
Japan enacted the Stablecoin Act in 2023, which established a licensing framework for stablecoin issuers. The law permits foreign stablecoins to operate in the country if they meet reserve and transparency requirements. Circle received preliminary approval to operate in Japan in late 2025.
While the partnership is centred on the Japanese market, it has limited direct implications for Africa. African financial institutions and fintechs have also explored stablecoin-based remittance and FX settlement solutions, particularly in Nigeria, Kenya, and South Africa, where foreign exchange liquidity constraints remain a challenge.
However, the Circle-Nomura partnership does not include African markets in its initial rollout. African firms looking to replicate similar infrastructure face different regulatory environments, as most African jurisdictions have not established comprehensive stablecoin frameworks comparable to Japan’s.
The partnership will face competition from other blockchain-based FX settlement initiatives. Ripple, which operates the XRP Ledger, has pursued similar partnerships with banks in Asia and the Middle East. Traditional FX platforms such as CLS Group have also begun exploring blockchain integration.
Nomura’s involvement signals that major Japanese financial institutions view stablecoins as viable infrastructure rather than speculative assets. The firm has been active in digital asset markets, operating a cryptocurrency custody service and participating in tokenisation trials.
Circle and Nomura have not disclosed the expected transaction volumes or client base for the service. The firms said they would provide further details following regulatory approval, which is expected in the first half of 2027.