According to reports, issuer Stablecoin Circle and Japan’s largest investment bank Nomura have partnered to enable instant currency settlements for Japanese companies as early as 2027.
The service would enable companies to convert yen to dollar-denominated stablecoins for cross-border transactions and instant settlement, reducing delays caused by bank opening hours and time zone differences, Nikkei reported on Thursday.
The partnership would introduce one of the world’s largest dollar stablecoins to Japan’s corporate currency market, expanding the apply of stablecoins in cross-border business-to-business settlements.
Circle is the issuer of the world’s second largest stablecoin, USDC (USDC), which has a market capitalization of $73.8 billion, CoinMarketCap data can be seen.
Cointelegraph reached out to Circle and Nomura but had not received a response by press time.
Stablecoin initiatives in Japan are gaining momentum as financial institutions explore blockchain-based regulated settlements. On Wednesday, SBI Holdings and Startale Group announced the announcement of JPYSC, a custodian-backed yen stablecoin intended for institutional and cross-border settlements, while Ripple USD (RLUSD), the world’s 10th largest dollar coin by market capitalization, officially fired in Japan.
Source: Ripple
Related: SBI is eyeing the Bitbank deal as Japan’s cryptocurrency exchange market consolidates
Japan moves closer to cryptocurrency ETFs, lower tax on digital assets
Japan was one of the first major economies to establish a legal framework for stablecoins, allowing banks, trust companies and licensed remittance providers to issue tokens regulated under the Payment Services Act.
The Payment Services Act also currently regulates cryptocurrencies in Japan, but regulators are moving to move digital assets under the Financial Instruments and Exchange Act, which would bring them closer to the regulatory treatment of time-honored financial products.
In early June, Japan’s lower house passed a bill that will bring crypto assets under the umbrella of the country’s financial instruments, potentially paving the way for exchange-traded funds, lower tax treatment, tighter stock market supervision, disclosure requirements and insider trading restrictions.
The proposed changes would also reduce capital gains tax on crypto assets from the current 55% to a flat rate of 20%.
Warehouse: Vietnam is preparing a cryptographic pilot, HK is pushing tokenization: Asia Express
