Japan’s largest payment network is now developing infrastructure for stablecoins. JCB Co. has come to an understanding with Circle to consider the use of USDC for treasury cross-border transfers, payments, and merchant transactions. The agreement is one of the first direct partnerships between a major card network in Asia and a regulated stablecoin issuer.
JCB and Circle Plan to Conduct a Pilot with Stablecoins
As the MOU, JCB will conduct a trial of USD Coin in limited settings to transfer funds between businesses and pay retailers. JCB is reportedly handling an annual transaction volume of 53.4 trillion and offers services for more than 181 million cardmembers as well as 72 million merchants around the globe.
Source: Investopedia
Circle issues a dollar-backed stablecoin USDC on various blockchain and compliance and transparency in reserves are emphasized. A schedule for a product live roll has not been made public yet.
Also Read: Circle Secures OCC Approval to Launch U.S. National Trust Bank
Regulatory and Market Context
The Payment Services Act of Japan is one of the few countries to legally regulate the use of stablecoins as financial instruments. The law stipulates that stablecoin reserves have to be fully backed and that there should be redemption rights that can be exercised on demand in fiat cash.
These provisions have allowed the Japanese financial industry and the payments sector to test the usage of stablecoins in controlled environments.
The JCB trial is not only an example of JCB’s innovative approach but also an illustration of industry-wide experimentation, payments companies are testing stablecoins in the area of B2B transactions, but they are still relying on legacy systems and rails to provide the customers with the seamless, familiar experience in retail banking.
Also Read: Circle Faces Legal Challenge Over Alleged Refusal to Help Recover Stolen Crypto
Regulatory and Market Context
The Payment Services Act of Japan is one of the few countries to legally regulate the use of stablecoins as financial instruments. The law stipulates that stablecoin reserves have to be fully backed and that there should be redemption rights that can be exercised on demand in fiat cash.
Source: ICIJ
These provisions have allowed the Japanese financial industry and the payments sector to test the use of stablecoins in controlled environments.
Also Read: Circle Leads Top 8 Tokenized Stocks With $32M Weekly DEX Volume
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