Nomura Holdings, Inc has signed a memorandum of understanding (MOU) with Circle Internet Financial, LLC, an affiliate of Circle Internet Group, Inc. (NYSE:CRCL), to pursue a strategic collaboration in digital finance across global markets, including Japan.

Through this collaboration, Nomura will explore the potential of next-generation market infrastructure using on-chain finance, where financial transactions are conducted directly on blockchain networks. Specifically, the company will consider opportunities in areas such as instant settlement using stablecoins backed by fiat currencies and other assets, as well as ways to enhance collateral management, fund transfers, and capital markets transactions.

Under this agreement, the two companies will work together to create new digital finance use cases and next-generation market infrastructure in global markets, including Japan, by leveraging Circle’s expertise in stablecoins and blockchain infrastructure and Nomura’s expertise in financial markets.

Under the MOU, Nomura and Circle will primarily explore collaboration in the following areas:

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

The two companies will now move forward with more detailed discussions, taking into account regulatory, legal, technical, and business perspectives.