JCB, Circle sign MOU to test USDC for cross-border transfers and merchant payments in Japan

JCB has signed a memorandum of understanding with Circle to explore using USD Coin, or USDC, for cross-border payments and merchant transactions in Japan. The work will begin with a proof of concept focused on JCB’s internal cross-border fund transfers, while the companies also study stablecoin payments at merchants serving international visitors and technologies that support interoperability across multiple blockchain networks. The agreement expands JCB’s stablecoin efforts beyond domestic retail testing. In January, JCB began a separate project with Digital Garage and Resona Holdings to examine the technical and operational hurdles of stablecoin payments at physical stores in Japan. The new Circle tie-up adds cross-border and corporate payment use cases. The move comes as stablecoin activity accelerates across Japan. Circle and Nomura were reported in June to be developing a stablecoin-based foreign exchange settlement service for Japanese businesses, Lawson said on July 14 it would test yen-denominated stablecoin payments at a Tokyo store from August, and Netstars launched a merchant payment service the same day supporting USDC, USDT and JPYC on Solana and Polygon. Japan’s regulatory framework has helped create a clearer path for such products. Amendments to the Payment Services Act that took effect in 2023 allow banks, trust companies and licensed money transfer providers to issue fiat-backed tokens. In June, Japan’s Lower House also passed a bill that would classify crypto assets as financial instruments, a change that could pave the way for crypto exchange-traded funds and stricter market conduct rules. USDC has a circulating supply of roughly $73 billion, compared with about $184 billion for Tether’s USDT, according to DefiLlama data.