[DigitalToday reporter Yoonseo Lee (이윤서)] Stablecoin issuer Circle and Japan's largest investment bank Nomura are reported to be pursuing a stablecoin-based foreign exchange settlement service for Japanese companies as early as 2027.

Cointelegraph and the Nikkei, among other foreign media outlets, reported on June 25 (local time) that the companies are considering a structure that converts yen into a dollar-denominated stablecoin for use in cross-border transactions.

The key is the speed of corporate FX settlement. The service is focused on enabling Japanese companies to convert yen into a dollar stablecoin and then immediately settle payments for overseas transactions. The idea is to reduce settlement delays caused by bank business hours and time differences between countries. If introduced, the dollar stablecoin would effectively enter Japan's corporate-to-corporate FX settlement market directly.

Reports of the cooperation come as Japan expands its stablecoin infrastructure. Japanese financial institutions are reviewing settlement models that use regulated blockchain payment networks. On June 24, SBI Holdings and the Startale Group announced a yen stablecoin, JPYSC, aimed at institutional and cross-border payments. Ripple USD (RLUSD) was also officially launched in Japan on the same day.

Japan is seen as one of the major countries that moved relatively early to establish a legal framework for stablecoins. Under the current Payment Services Act, banks, trust companies and registered fund transfer service providers can issue regulated tokens. As this institutional foundation expands into corporate payments, stablecoins appear to be broadening from personal investment and trading to institutional settlement.

A revamp of the regulatory system is also under way. Japan's regulators are currently pushing to move cryptocurrencies covered under the Payment Services Act into the Financial Instruments and Exchange Act framework. In that case, digital assets would be subject to regulation closer to traditional financial products.

Earlier this month, Japan's House of Representatives passed a bill to bring cryptocurrencies into the financial products framework. If further legal revisions follow, changes could include discussions on introducing cryptocurrency spot exchange-traded funds, tax relief, tougher supervision of exchanges, disclosure requirements and restrictions on insider trading. Under the proposed overhaul, the capital gains tax on cryptocurrency transfers, currently as high as 55 percent, could be lowered to a single 20 percent rate.

Against this backdrop, the reported cooperation between Circle and Nomura is seen as an example of Japan seeking to incorporate stablecoins as corporate payment infrastructure rather than simply a cryptocurrency product. If an actual service is launched, attention is focused on whether Japanese companies' cross-border remittance and settlement methods, and the scope of institutional adoption of dollar stablecoins, will expand.