Japan's Largest Payment Network Tests USDC Stablecoin Payments

Japan’s largest domestic payment network, JCB, has signed a memorandum of understanding with Circle to explore the use of the USDC stablecoin for cross-border payments and merchant transactions. As part of the agreement, the companies will begin with a proof of concept focused on using USDC for JCB’s internal cross-border fund transfers.

They will also evaluate how stablecoin payments could be used by international visitors making purchases at merchants across Japan. In addition, JCB and Circle plan to examine technologies that improve interoperability between multiple blockchain networks.

The partnership builds on a separate initiative launched by JCB in January alongside Digital Garage and Resona Holdings, which is testing stablecoin payments at physical retail stores. That project aims to identify the technical and operational requirements for introducing stablecoin payments to domestic merchants. Although no commercial launch timeline has been announced, the companies said they intend to explore additional applications for stablecoin infrastructure across cross-border payments and merchant services.

USDC is currently the world’s second-largest stablecoin, with a circulating supply of approximately $73 billion, behind Tether’s USDT, which has a circulating supply of around $184 billion, according to DefiLlama.

Japan expands stablecoin payment initiatives

The agreement adds to a growing number of stablecoin projects announced in Japan this year as businesses increasingly test blockchain-based payment and settlement solutions. In June, Circle and Nomura, Japan’s largest investment bank, were reported to be developing a stablecoin-powered foreign exchange settlement service. The platform would allow Japanese companies to convert yen into USDC for cross-border payments with near-instant settlement.

More recently, convenience store operator Lawson announced plans to begin testing yen-denominated stablecoin payments at a Tokyo location in August. Meanwhile, Japanese payments company Netstars launched a merchant payment service supporting USDC, USDT and JPYC across the Solana and Polygon blockchains.

Japan continues digital asset reforms

Japan remains one of the first major economies to establish a comprehensive legal framework for stablecoins. Amendments to the Payment Services Act, which came into effect in 2023, allow banks, trust companies and licensed money transfer providers to issue fiat-backed stablecoins.

The country is also advancing broader cryptocurrency regulation. In June, Japan’s Lower House approved legislation that would classify crypto assets as financial instruments, a move that could pave the way for crypto exchange-traded funds (ETFs) while bringing the industry under stricter financial market regulations.

Sources:

https://cointelegraph.com/news/japans-jcb-signs-mou-with-circle-to-explore-usdc-payments-and-cross-border-settlements

https://defillama.com/stablecoins