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Japan’s JCB has signed a memorandum of understanding with Circle to test USDC in Treasury border transactions and evaluate stablecoin payments to physical traders in Japan.
The agreement does not introduce USDC on the JCB payment network or set a public opening date. The first phase is a proof of concept that focuses on the transfer of JCB’s internal funds, giving companies a place to control how they can test whether stablecoins can reduce payment costs and improve the company’s cash flow.
TL; DR
- JCB and Circle will start with USDC proof of JCB’s internal money transfer.
- The companies will separately explore stablecoin payments for merchants and tourists from other countries in Japan.
- The JCB network includes more than 175 million cardholders and approximately 71 million merchants, but the agreement does not link users or locations to USDC.
- Circle’s June agreement with Nomura and BNY shows a broader approach to the establishment, storage, conversion and access to stablecoins.
JCB Starts With Internal Treasury Transfer
Under the July 14 agreementJCB and Circle will initially look at the USDC for internal money transfers and cross-border financial services. The companies will see if a stablecoin can improve payments, reduce shipping costs and help accelerate internationalization.
USDC can be redeemed one-time for US dollars and supported by highly liquid funds and cash equivalents. Unlike bank transfers that are restricted by operating hours and messaging relationships, blockchain transactions can move around the clock and settle without waiting for multiple intermediaries to update separate ledgers.
This structure can reduce the amount of money that JCB has to reserve in different markets. Quick settlement can allow branch teams to move cash closer to when it’s needed instead of keeping prepaid cash in multiple accounts.
A proof of concept must determine whether the benefits of the theory will survive the entire operational process. Blockchain payments represent only one part of the cost. JCB must also account for USDC acquisitions, convert them into local currencies, save cash, reconcile transactions and comply with accounting rules and regulations in each jurisdiction.
This project should be seen as an attempt to make better use of funds rather than evidence that the USDC has already released funds from JCB.
Transaction Payments Need More Than Blockchain Stability
The second part of the agreement is related to in-store stablecoin payments for merchants and visitors from other countries in Japan. The proposed model would allow a foreigner holding USDC to pay without having to convert dollars to yen through a bank, card issuer or currency exchange service.
For merchants, fast cashback can shorten the time between accepting a payment and receiving funds that can be used. The companies will also explore the connection between several blockchain networks instead of limiting the potential service to a single chain.
The MOU does not mean that all JCB dealers will start accepting USDC. A functional service would still require consumer wallets, including a trading platform, accounting, refunds, fraud control and a way to convert a stablecoin into the currency each trader has requested.
A Japanese investor may not want to continue exposure to dollar assets. Therefore, the conversion to yen may be important for people to start trading, especially if the exchange rate changes the final cost of the trade after the sale.
JCB has already started investigating the matter. In January, the company merged with Digital Garage and Resona Holdings in a different ways to pay stablecoin store.
The project was designed to test user interface, blockchain functionality, system stability and transaction stability – including conversion to yen. It combines stablecoins denominated in dollars and yen and lists more than 175 million JCB cards and about 71 million merchants in the global industry.
Circle’s partnership adds another international stablecoin and a cross-border financial sector to the work that JCB has already started in the home business.
Japan is also testing stablecoin payments directly for retail payments. Lawson will run a solo pilot with KDDI and HashPort in August 2026allowing the yen-denominated stablecoin to be used through an existing trading system in Takanawa Gateway City. This case is smaller than the JCB-Circle approach, but it provides a useful test if stablecoin payments can be integrated without separate crypto terminals or major changes to the trading infrastructure.
Japan is also testing stablecoin payments directly for retail payments. Lawson will run a solo pilot with KDDI and HashPort in August 2026allowing the yen-denominated stablecoin to be used through an existing trading system in Tokyo’s Takanawa Gateway City.
This case is less restrictive than the JCB-Circle method as it is limited to employees from participating companies and one store. Its value lies in testing whether stablecoins can be added to a stable transaction system without the need for separate crypto terminals or major changes to trading operations. Lawson can assess the flow of money, wallet usage, payment confirmation, refunds and staff at the controlled point of sale before considering any release to consumers. So the two projects affect different areas of the payment system: Lawson is testing the in-store experience, while JCB and Circle are evaluating the transfer of internal wealth and a larger system of stablecoin acceptance in business networks.
Japanese Laws Keep Access to Stablecoins in Legal Systems
Japan launched its stablecoin program under the Payment Services Act in June 2023. Tokens that meet the legal requirements are called digital electronic devices, while businesses in the middle of buying, selling or transferring must work within the registration and compliance of the country.
USDC gained approval in Japan through SBI VC Trade in March 2025. Circle said the platform received approval under the Financial Services Agency framework, making USDC the first global stablecoin approved for distribution.
The Changes in the value of SBI VC established an entry point to access and distribute the token, but a global payment system would require additional certification entrants and clear roles between JCB, Circle, wallet operators, payment processors and converters.
Japan also applies roaming laws to electronic payment service providers. The The Financial Services Agency is looking for service providers publish information about the founder and the beneficiary when stablecoins are transferred to regulated entities in the operating regions.
This improvement means that USDC cannot simply be added to JCB terminals as an unlimited payment method. Companies need to know who is verifying customers, checking transactions, documenting the details of the beneficiaries and managing the transition between stablecoins and bank funds.
Circle Builds First Tracks on USDC
The JCB deal follows two other Circle partnerships announced in June.
On June 26, Nomura signed an MOU with Circle to check stablecoin stability, fund transfer, collateral management and market activity. The agreement focuses on the use of blockchain tools for financial institutions in Japan and other international markets.
After three days, BNY added more USDC coins and fueled its Digital Asset Custody platformallowing corporate customers to use, redeem, store and transfer USDC through a single banking interface.
These three agreements cover different aspects of the same infrastructure:
- BNY coordinates institutional custody and the creation and exchange of USDC.
- Nomura is exploring stablecoins for institutional, collateral and capital markets services.
- JCB is evaluating the transfer of assets and possible commercial acceptance.
Together, the partnership shows Circle is trying to create access to all payments instead of just relying on cryptocurrency exchanges. The storage and conversion of the organization provides a place for entry and exit, while JCB can bring stablecoins closer to the market for consumers and traders.
The agreements remain separate, however, and no one guarantees that the organizations will use the shared approach.
The MOU in Payment Terms
The first confirmation will be the results of the JCB test during the transfer. Companies will need to demonstrate that the USDC reduces the total settlement period or cost after accounting for transaction costs, costs, compliance and operating costs.
A commercial release may require more information:
- Blockchain networks that will be supported
- The issuer responsible for distributing USDC
- Whether traders receive USDC or just yen remittances
- Fees for payments, conversions and withdrawals
- Listed stores or trade groups participating in the trial
- Consumer protection against failed payments, fraud and chargebacks
Until this is published, the JCB-Circle partnership is best understood as an extension of Japan’s stablecoin experiment rather than a replacement for the card network. Its importance comes from placing the USDC within the economy and the merchant payment system of Japan’s only international credit card, leaving the transaction type, structure and timing unsolved.
