JCB taps Circle's USDC for Japan cross-border payments trial
Japan's largest payment network is testing USDC for cross-border transfers, signaling that the country's early stablecoin regulation is driving institutional adoption.
JCB has signed a memorandum of understanding with Circle to explore using USDC for cross-border treasury operations and merchant payments. The partnership will initially focus on a proof of concept for internal international fund transfers. The companies will also test stablecoin payments at Japanese merchants catering to international visitors and evaluate cross-blockchain interoperability.
The agreement marks a step beyond domestic experimentation for Japan's largest domestic payment network. In January, JCB launched a separate initiative with Digital Garage and Resona Holdings to identify the technical and operational hurdles of accepting stablecoins at physical retail locations. Expanding to cross-border treasury functions addresses a higher-value corporate friction point, potentially bypassing traditional correspondent banking networks.
JCB’s move is part of a rapid acceleration in Japanese stablecoin deployment this year. USDC is the world’s second-largest stablecoin with a circulating supply of about $73 billion, according to DefiLlama, trailing Tether’s USDT at roughly $184 billion.
Corporate adoption is spreading across both wholesale and retail channels. Circle is reportedly developing a stablecoin-based foreign exchange settlement service with Nomura, Japan’s largest investment bank, to help businesses convert yen to USDC for near-instant settlement. On the retail side, convenience store operator Lawson plans to test yen-denominated stablecoin payments in Tokyo starting in August, while Netstars recently launched a merchant service supporting USDC, USDT and JPYC across the Solana and Polygon blockchains.
This corporate activity is underpinned by Japan's early move to regulate the sector. The country was the first major economy to establish a comprehensive legal framework for stablecoins when Payment Services Act amendments took effect in 2023. The legislation permits banks, trust companies and licensed money transfer providers to issue fiat-backed tokens.
Lawmakers are simultaneously tightening broader digital asset oversight. In June, Japan's Lower House passed a bill classifying crypto assets as financial instruments, a change that could pave the way for crypto exchange-traded funds while imposing stricter market rules. While JCB and Circle have not set a timeline for commercial deployment, the growing stack of proof-of-concept projects indicates that institutional infrastructure for blockchain-based settlement is actively maturing in Japan.
