Nomura, Circle, to Collaborate on FX Settlement/Payment Project

Nomura and Circle have signed a memorandum of understanding to collaborate in digital finance globally, specifically targeting instant settlement using stablecoins backed by fiat currencies.

The proposed partnership will also investigate using stablecoins for on-chain finance and capital markets transactions, enhancing on-chain collateral management, fund transfers, and settlement infrastructure, and developing trust functions, including asset preservation and collateral management, needed to enable the circulation of stablecoins and on-chain finance.

Reports suggest that the payment/settlement solution could go live in 2027, using Circle’s USDSC stablecoin, which was recently approved by Japan’s Financial Services Agency to be used by Japanese institutions.

Nomura observes that the financial industry has seen growing demand for greater efficiency, immediacy, and transparency in areas such as cross-border payments, foreign exchange transactions, treasury operations, tokenised financial products, collateral management, and capital markets transactions. “Against this backdrop, there has been increasing interest in new financial infrastructure that leverages stablecoins and blockchain technology,” it adds. “The company aims to move digital finance beyond proof-of-concept initiatives and develop it into practical financial infrastructure for real-world business operations.”

While no yen-backed stablecoin was in existence when the MoU was being formed, recent weeks have seen two projects launch, one from SBI Holdings, the other, due for April 2027, by MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation.