Japanese payments company JCB has signed a memorandum of understanding with Circle to explore using USD Coin (USDC) stablecoins for cross-border payments and merchant transactions. According to the latest announcement, the partnership will begin with a proof of concept for JCB's internal fund transfers before expanding to retail payment use. The collaboration represents Circle's continued institutional payments expansion following its recent U.S. trust bank approval, with the U.S. Office of the Comptroller of the Currency granting final approval for Circle National Trust on July 14. The strategic alliance aims to merge Circle's stablecoin and blockchain infrastructure—which includes USDC and EURC—with JCB's extensive merchant network, with plans to evaluate broader adoption among affiliated merchants following the initial testing phase.
Japanese payments company JCB has expanded its USD Coin (USDC) payment pilot program to include a Tokyo store popular with foreign tourists, with plans to test USDC payments at the location within this year. According to ChainCatcher citing CoinPost, the pilot aims to reduce currency exchange steps for tourists and lower payment fees through stablecoin-enabled transactions. The expansion builds on JCB's previous cooperation with Digital Garage and Resona Holdings to test in-store payments using USDC and JPYC within Japanese brick-and-mortar stores. The Tokyo store pilot represents a significant step forward from the initial proof of concept for JCB's internal cross-border treasury operations that was previously announced. As reported by ChainCatcher, JCB has partnered with a Circle-affiliated company to conduct this trial, with plans to evaluate broader adoption among affiliated merchants following the initial testing phase.
The partnership leverages JCB's massive scale, with the company serving 140 million users and 40 million merchants worldwide. According to the latest reports, the collaboration will explore how stablecoins can enhance cross-border treasury operations and payments, with initial efforts focusing on improving payment efficiency, reducing remittance costs, and supporting broader cross-border payments using USDC. The initiative comes amid a broader push for stablecoin adoption in Japan, with USDC holding a market capitalization of nearly $73 billion as the world's second-largest stablecoin. Tourists in Japan primarily use bank cards for payments, but there are spending limits, which can be bypassed with stablecoins, as reported by Nikkei. The companies highlighted that stablecoins bring benefits including reducing the burden of currency exchange for inbound tourists, further improving the efficiency of fund settlement, and improving cash flow for merchants.
Japan has recently accelerated stablecoin merchant payment trials, with Lawson's planning to test JPYC in-store settlements in August. According to Nikkei, Lawson, one of Japan's largest convenience store chains, will accept stablecoins at its stores as part of a pilot that starts in August, using KDDI's yen-denominated stablecoin, JPYC. The retailer plans to begin trials at its Lawson Takanawa Gateway City store in Tokyo with telecom operator KDDI and digital asset wallet provider Hashport. Circle has also announced plans to partner with Nomura to develop a USDC-based foreign exchange settlement service for Japanese businesses as early as 2027. This broader initiative demonstrates Japan's commitment to exploring stablecoin applications for retail payments, with the collaboration building on JCB's existing digital asset initiatives and aligning with the country's growing financial sector trend toward utilizing digital assets to modernize traditional settlement systems.
The partnership occurs amid intensifying competition in the stablecoin sector, with Open USD launching with a revenue-sharing structure that distributes reserve income among participating members. The collaboration is part of a growing wave of stablecoin initiatives in Japan following regulatory changes that have opened the market to broader adoption. Stablecoins are gaining attention globally as a foundation for creating new ecosystems in cashless societies, given their high level of convenience. The market expansion is expected to bring benefits including reducing currency exchange burden for inbound tourists and improving cash flow for merchants. Circle has continued building relationships with regulated financial institutions, with Standard Chartered introducing USDC services through its Dubai operations and BNY adding USDC to its digital asset custody platform, positioning the partnership as part of a broader institutional adoption trend.
