Japan’s largest domestic card and payments network, JCB, has signed a memorandum of understanding with Circle to explore the use of USDC in cross-border payments and merchant transactions. The agreement focuses first on technical trials for internal fund transfers, while also testing whether stablecoin payments can work at retail locations for international visitors.

JCB and Circle said the initial work will include a proof of concept for using USDC for JCB’s internal cross-border movement of funds. They will also evaluate stablecoin checkout options for merchants in Japan and examine technical approaches aimed at enabling interoperability across multiple blockchain networks. The partners did not outline a timeline for any commercial rollout.

Key takeaways

• JCB and Circle will begin with a proof of concept for using USDC for JCB’s internal cross-border fund transfers.
• The memorandum also targets merchant payments in Japan for international visitors, alongside research into blockchain interoperability.
• JCB’s stablecoin push follows an earlier January initiative with Digital Garage and Resona Holdings focused on domestic store payments.
• Stablecoin payment experimentation in Japan is expanding alongside the country’s broader regulatory reforms that began taking shape in 2023.

From internal transfers to merchant payments

The memorandum of understanding is structured around two near-term lines of inquiry. First, JCB and Circle plan to test how USDC could support cross-border settlement for JCB’s own operational needs—initially framed as internal transfers. In practical terms, this kind of trial is aimed at reducing friction in cross-border movement by using a stablecoin designed to maintain a link to the US dollar.

Second, the partners intend to assess whether stablecoins can be used at the point of sale. The emphasis on merchants in Japan—specifically for international visitors—suggests the project is not only about settlement infrastructure, but also about the customer-facing experience and the operational steps required for merchants to accept payments.

Alongside these payment use cases, JCB and Circle said they will evaluate interoperability-related technologies across multiple blockchain networks. That focus matters because stablecoin liquidity and settlement paths can differ depending on the chain and infrastructure used. Interoperability research, if it bears fruit, could lower the cost and complexity of connecting payment flows to different token and network ecosystems.

Building on Japan’s earlier stablecoin experiments

This new Circle partnership builds on momentum that JCB already set earlier this year. In January, JCB launched a separate stablecoin payment test with Digital Garage and Resona Holdings, aimed at trialing stablecoin payments at physical stores in Japan. That earlier initiative was described as an effort to identify technical and operational challenges of enabling stablecoin payments for domestic merchants.

What changes with the Circle memorandum is the scope and framing. While the January work centered on domestic store payment trials and problem discovery, the USDC-focused agreement adds a cross-border dimension and introduces a broader look at interoperability and potential infrastructure applications beyond the first proof of concept.

Importantly, both JCB and Circle stopped short of providing a timeline for commercial deployment. For investors and builders, that signals the project may still be in the validation stage—useful for gauging feasibility, but not yet a commitment to near-term production systems.

Why USDC is a natural candidate for cross-border trials

Circle’s USDC is among the most widely used dollar-backed stablecoins. According to DefiLlama data cited in the original reporting, USDC is the world’s second-largest stablecoin by market capitalization, with a circulating supply of about $73 billion—behind Tether’s USDT at roughly $184 billion.

That market footprint matters for payments pilots because it can support the practical goal of ensuring that stablecoins used for settlement have sufficient liquidity and infrastructure connectivity. While JCB and Circle did not specify which blockchain networks would be involved in the initial cross-border proof of concept, they did indicate they would evaluate technologies for interoperable settlement across networks—an area where USDC’s ecosystem presence may be a key advantage.

Japan’s stablecoin payment push and the regulatory backdrop

The JCB–Circle memorandum arrives as Japan continues to expand stablecoin-related payment experimentation. Earlier this year, reporting indicated that Circle and Nomura were working on a stablecoin-based foreign exchange settlement service for Japanese companies. The concept described in that coverage focused on enabling businesses to convert yen into USDC for cross-border transactions and aiming for near-instant settlement.

Other projects in Japan also point to a broader industry effort to test stablecoin rails across different commercial settings. On Monday, convenience store operator Lawson announced plans to pilot yen-denominated stablecoin payments at a Tokyo location starting in August. Separately, Netstars launched a merchant payment service supporting USDC, USDT, and JPYC, with availability across Solana and Polygon.

Behind these trials is Japan’s legal and policy direction. Japan was among the first major economies to build a stablecoin framework: amendments to the Payment Services Act took effect in 2023, allowing banks, trust companies, and licensed money transfer providers to issue fiat-backed tokens. That regulatory foundation is a key reason pilots can progress from experimental concepts toward implementations that involve regulated participants.

Japan is also moving through wider digital asset reforms. In June, the Lower House passed a bill that would classify crypto assets as financial instruments, a change that could set the stage for additional oversight and market-structure reforms, including bringing more of the sector under stricter rules. While that legislation is not itself a stablecoin payment initiative, it forms part of the same macro trend: regulators seeking clearer definitions and guardrails for token-based finance.

What to watch next

For now, JCB and Circle are positioning their agreement around proofs of concept—internal cross-border fund transfers and merchant acceptance trials—without committing to a launch date. The most important signals to follow are technical: whether interoperability work reduces friction across networks and whether merchant pilots demonstrate operational readiness for real-world payments beyond internal settlement.

Digital asset custodian Anchorage Digital has added native TRX staking for institutional clients, expanding its support for the Tron blockchain as demand for regulated access to staking services grows.

The launch expands Anchorage’s support for Tron after introducing institutional custody for TRX, the network’s native token, earlier this year. Clients can now stake TRX directly from the company’s custody platform or Porto self-custody wallet, allowing them to earn protocol rewards for helping secure the blockchain without moving assets outside their existing custody environment.

Anchorage said the expansion reflects growing institutional interest in the Tron ecosystem, one of the largest networks for USDt (USDT) settlement. According to the company, Tron processed roughly $2 trillion in USDT transfers during the first quarter of 2026 while averaging 10.9 million daily transactions and 3.2 million active addresses. Tether’s transparency data shows nearly $90 billion of USDT currently circulates on the network.

The Tron rollout follows Anchorage’s broader expansion of institutional staking services. In November, the company partnered with Figment to add HYPE staking, extending custody-integrated staking support to the Hyperliquid ecosystem.

Related: Ethereum’s much-hated staking ‘tax’ may already be obsolete

Institutional platforms expand beyond custody

Institutional crypto infrastructure providers have increasingly expanded beyond custody, adding staking capabilities as investors seek regulated ways to earn returns on digital assets.

In October 2025, Coinbase and Figment expanded their institutional staking partnership, allowing Coinbase Prime clients to stake proof-of-stake assets including Solana (SOL), Avalanche (AVAX), Sui (SUI) and Aptos (APT) directly from custody. Four months later, Ripple integrated Figment and Securosys into its institutional custody platform, enabling banks and custodians to offer staking without having to operate their own validator infrastructure.

Asset managers have also sought integrated custody and staking services. In February, BitGo expanded its partnership with 21shares to provide regulated custody and staking for the firm’s US exchange-traded funds and global exchange-traded products through its regulated US and European entities.

Corporate crypto treasuries have joined the trend as well. Bitmine launched its MAVAN staking platform in March, having initially built the validator infrastructure for its own Ether treasury and later opening it to external institutions and custodians.

On Monday, Bitmine said it holds 5.77 million ETH, representing about 4.8% of Ether’s total supply, and has staked 4.92 million ETH through MAVAN.

Top Ethereum treasury companies. Source: CoinGecko

Magazine: Robinhood L2 sparks ETH optimism, Saylor ‘muddies waters.’ Hodler’s Digest, July 5-12, 2026

Tether has expanded its push into the US financial system by leading a $7 million funding round for Pact Labs to bring its USAT stablecoin into a payroll market that processes more than $11 trillion in annual payments.

According to a press release from Tether, the company led Pact Labs’ $7 million Series A funding round alongside Blockchange Ventures and Lasagna. The investment is intended to strengthen Pact Labs’ payroll and payment infrastructure while supporting enterprise adoption of USAT, Tether’s US-focused dollar-backed stablecoin.

Instead of concentrating on crypto trading activity, the partnership centers on integrating stablecoins into everyday wage payments used by businesses across the United States.

Payroll integration brings USAT into enterprise payments

Through the partnership, Pact Labs plans to embed USAT into payroll platforms used by employers, allowing companies to process wages using blockchain-based payment rails rather than conventional banking infrastructure. The company also intends to expand embedded digital wallets and other financial services that operate through blockchain networks.

Tether believes payroll is one of the strongest practical applications for stablecoins because wage payments occur on a predictable schedule and involve large transaction volumes. 

According to Tether CEO Paolo Ardoino, the company’s transaction data has consistently indicated demand for dollar-backed digital assets as a settlement tool for salary payments. While Ardoino pointed to internal payment activity as evidence of that demand, he did not present it as an industry-wide conclusion.

The opportunity is significant because the US payroll system handles more than $11 trillion each year. Despite that scale, much of the infrastructure continues to rely on legacy banking systems and batch settlement cycles.

According to Tether, those processes can delay employee payments by several days, increasing the risk of overdraft fees, short-term borrowing, and other financial pressures for workers waiting to access earned wages.

Using blockchain infrastructure, employers could process payroll continuously instead of being limited by traditional banking hours. Tether says USAT is designed to support around-the-clock settlement, potentially reducing payment delays associated with existing payroll systems.

Global expansion continues as US regulation evolves

The payroll initiative arrives as Tether continues expanding its international footprint. According to recent reports, Bolivia is evaluating the use of Tether’s USDT alongside the US dollar and the boliviano within parts of its national payments framework, adding another potential use case for the company’s stablecoin infrastructure.

The US expansion also follows Tether’s withdrawal from parts of the European market after the implementation of the Markets in Crypto-Assets (MiCA) framework, which introduced new compliance requirements for stablecoin issuers operating within the European Union. As a result, the company has increasingly concentrated on jurisdictions where it sees stronger opportunities for adoption.

Meanwhile, stablecoin regulation has remained a central topic in Washington as lawmakers continue debating the CLARITY Act. Banking industry groups recently warned that the proposed legislation could leave regulatory gaps for stablecoin issuers, adding fresh uncertainty to the policy debate. Those concerns also coincided with weakness in shares of Circle, whose stock declined as investors reacted to questions surrounding the bill.

Against that backdrop, Tether’s latest investment places attention on practical payment infrastructure rather than digital asset trading. By backing payroll technology that serves mainstream businesses, the company is positioning USAT for use in one of the largest recurring payment markets in the United States while policymakers continue shaping the country’s stablecoin regulatory framework.

The UK tax authority has announced plans to change how cryptocurrency lending and liquidity pool arrangements are taxed, moving toward a “no gain, no loss” treatment for certain disposals. The policy is designed to defer capital gains tax until a participant makes what HM Revenue & Customs (HMRC) calls an “economic disposal.”

In a notice released on Monday, HMRC said the approach would apply starting April 6, 2027. The move is aimed at aligning tax outcomes with the underlying economics of crypto lending and decentralized liquidity arrangements, where investors may not realize a profit in the usual sense until they dispose of their crypto exposure.

Key takeaways

• HMRC plans to apply a “no gain, no loss” approach to certain disposals tied to crypto loans and liquidity pools from April 6, 2027.
• The change is intended to defer capital gains tax on digital assets until an “economic disposal,” rather than taxing interim events.
• HMRC expects the update to affect around 700,000 individuals and trustees.
• The policy contrasts with earlier HMRC guidance for crypto lending and liquidity pools issued in 2022 after consultation.
• UK capital gains tax rates for 2025–2026 remain in the 18% to 24% range depending on the taxpayer’s rate band, but the timing of when gains are recognized would shift for covered arrangements.

What HMRC is changing for crypto loans and liquidity pools

HMRC’s announcement focuses on “certain disposals” related to cryptocurrency lending and liquidity pool participation. Under the new approach, HMRC says it will treat covered transactions under UK capital gains rules as “no gain, no loss” for situations including acquisition and disposal of an interest in a lending arrangement in exchange for the same type of asset.

The tax authority also indicated that its treatment would extend to cases involving borrowed assets acquired at market value, as well as arrangements operating under similar conditions using automated market makers.

Why “no gain, no loss” is meant to defer tax

HMRC’s stated rationale is that taxing these activities immediately could produce results that do not reflect when economic benefit is actually realized. The authority said the measure supports fairness in the UK tax system and “aligns the tax treatment more closely with the economics of these arrangements” by recognizing gains and losses “only when the participant makes an economic disposal of the cryptoassets.”

In practical terms, the policy is aimed at reducing instances where taxpayers might face capital gains tax consequences from events that are not, from an investor’s perspective, a final exit from their economic position.

Industry feedback and the move away from older guidance

HMRC described the change as significant and connected it to a broader consultation period that followed the authority’s 2022 guidance on crypto liquidity pools and lending. The notice indicates that the update is expected to affect roughly 700,000 people and trustees.

While the precise boundaries of HMRC’s “certain disposals” will matter to taxpayers planning their activities, HMRC’s direction is clear: it intends to reduce administrative pressure on taxpayers by adopting an approach that better matches how crypto lending and liquidity participation are commonly structured.

Aave founder and CEO Stani Kulechov said in an X post on Monday that “This is the right direction,” adding that industry feedback suggested alternative approaches would create “significant admin burden for the tax payer.”

Tax rates remain, but the timing could change

UK rules for 2025–2026 set capital gains tax rates for crypto at between 18% and 24%, depending on whether the taxpayer falls within the basic-rate or higher-rate band, according to UK income tax rate guidance. HMRC’s announcement does not change these headline rates.

Instead, the key difference is when gains and losses would be recognized for covered lending and liquidity pool transactions. By deferring capital gains tax until an “economic disposal,” HMRC is effectively shifting attention from intermediate events within an arrangement to the point at which the taxpayer’s exposure is actually disposed of.

For investors, traders, and liquidity providers, this can matter as much as the headline tax percentage: timing can affect cashflow, how gains line up with other income, and how accurately tax reporting corresponds to realized outcomes.

Separately: a Solana community leader files to run in UK by-election

While HMRC’s announcement reshapes crypto taxation policy, UK politics is also seeing a crypto-adjacent candidate enter the spotlight. Reform leader Nigel Farage will face challengers in a by-election in Clacton following his resignation last week, after reports tied him to donations connected to the crypto industry.

On Tuesday, Stephen Newnham, described as the leader of the Solana community group Superteam UK, said he will run as an independent candidate against Farage and others. The by-election is scheduled for Aug. 13 and, according to reporting that includes non-traditional candidates, will also include comedian and author Jon Harvey in costume as Count Binface.

Farage’s resignation triggered the by-election, and the political narrative around his campaign includes allegations and reporting about financial contributions. Earlier coverage cited a $6.7 million donation connected to crypto billionaire Christopher Harborne, which Farage described at different times as both a “reward” related to the UK’s exit from the European Union and later as a “gift,” and also referenced other assistance linked to George Cottrell, described in that coverage as a convicted fraudster associated with a crypto casino.

For crypto participants in the UK, the next watch points are how HMRC will define and operationalize “certain disposals” and what it will consider an “economic disposal” in practice. With the new framework set to begin in April 2027, taxpayers and platforms alike should prepare for reporting changes and monitor further guidance that turns today’s principle into day-to-day compliance.

Senator Thom Tillis has proposed new CLARITY Act language that would allow federal banking regulators to intervene if stablecoin yields trigger systemwide deposit flight from US banks.

According to a report from Punchbowl, the North Carolina Republican has suggested adding a “circuit-breaker” provision to the Senate’s crypto market structure bill after concerns from banking groups continued to dominate negotiations over stablecoin rules.

The proposal would authorize regulators, including the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), to step in if they determine that stablecoin-related activity is causing deposits to leave the banking system at a broader level.

The latest proposal returns attention to one of the most contested sections of the CLARITY Act as lawmakers work toward releasing the Senate text before the chamber’s August recess.

It also comes after earlier negotiations led by Tillis and Senator Angela Alsobrooks produced a compromise allowing crypto firms to offer only activity-based rewards rather than unrestricted yield on stablecoins.

Banking groups continue pushing for tighter stablecoin language

Despite that compromise, banking organizations remain unconvinced that the latest draft adequately protects traditional deposits. As previously reported by crypto.news, several banking associations have argued that the bill’s current wording leaves room for stablecoin issuers to offer incentives that could encourage customers to move money away from bank accounts.

According to those banking groups, the language governing permissible rewards remains too vague and creates uncertainty over how regulators would interpret future stablecoin products. Community banks have been particularly vocal in warning that widespread migration of deposits into yield-bearing digital assets could reduce funding available for lending and other banking activities.

Tillis’ proposed circuit-breaker mechanism appears designed to address those concerns without completely prohibiting stablecoin rewards. Under the framework described by Punchbowl, regulators would receive authority to act only after identifying evidence of systemwide deposit flight rather than imposing an outright ban in advance.

The banking debate is unfolding alongside another dispute that continues to complicate Senate negotiations. Several Democratic lawmakers are pressing for ethics provisions tied to President Donald Trump’s crypto business interests before agreeing to move the legislation forward. 

Earlier this week, Senator Elizabeth Warren urged colleagues to include ethics safeguards in the bill, a development that coincided with a decline in prediction market odds for the legislation’s passage.

Senate prepares to release legislative text

Fresh guidance on the bill’s timeline came during an interview on FOX Business, where Senator Cynthia Lummis said the Senate expects to introduce the CLARITY Act’s legislative text within the next few days.

Speaking during the interview, Lummis stated that the legislation is intended to strengthen consumer protections, help law enforcement combat illicit finance, and keep digital asset markets operating within the United States. She also reiterated that Senate leaders are working toward bringing the measure to the floor before lawmakers leave Washington for the August recess.

Her comments follow earlier reports indicating that Senate leadership is targeting a floor vote before the end of July if negotiations can be completed. Lummis noted, however, that the scheduling decision ultimately rests with Senate Majority Leader John Thune, who controls when legislation is brought before the full chamber.

While supporters continue to push for action before the recess begins, the final Senate text must still bridge disagreements over stablecoin regulation, banking safeguards and ethics provisions before it can secure the bipartisan backing needed to advance.

Shares of CleanSpark surged as much as 22% on Tuesday after the Bitcoin miner announced a 20-year data center lease in Georgia, reflecting its ongoing expansion into digital infrastructure beyond cryptocurrency mining.

CleanSpark said it signed a 20-year triple-net lease with an undisclosed investment-grade global technology company for a 175-megawatt data center at its Sandersville, Georgia, campus. The company estimates the deal will generate approximately $6.6 billion in contracted revenue over the initial term, increasing to $11.6 billion if the tenant exercises two five-year extension options.

Under the agreement, the tenant will install computing infrastructure at the site, with phased deliveries expected to begin in the fourth quarter of 2027.

The agreement is the latest sign of CleanSpark’s push to diversify beyond its core Bitcoin mining business and capitalize on growing demand for AI and high-performance computing infrastructure. Despite the shift, CleanSpark remains one of the largest publicly traded Bitcoin holders. 

CleanSpark has gradually accumulated Bitcoin over the past year. Source: BitcoinTreasuries.NET

CleanSpark (CLSK) shares reached an intraday high of $15.10, before trimming some gains going in the US lunch hour. The stock was recently up about 11%, compared with a gain of less than 1% for the sector-tracking CoinShares Bitcoin Miners ETF (WGMI).

Related: Crypto Biz: Bitcoin maximalism meets the realities of capital markets

Bitcoin miners seek new revenue streams

CleanSpark’s expansion comes as Bitcoin miners face mounting pressure from weaker mining economics, including lower revenues and tighter profit margins following the 2024 halving. In March, the company reported a fiscal second-quarter net loss of $378 million, with nearly 60% of the loss attributed to a decline in Bitcoin’s price.

In February, the company sold a portion of its BTC holdings to help fund operations and growth initiatives.

The company has fared better than many of its peers, however. While several miners have sold significant portions of their Bitcoin reserves to shore up liquidity, CleanSpark has remained a net accumulator. As Cointelegraph reported, publicly traded miners sold roughly 15,000 BTC between October and the end of February.

It is expected to report fiscal Q3 results on Aug. 6, with analyst consensus for a loss of $0.25 per share compared to earnings of $0.79 in the comparable quarter last year, according to Yahoo Finance. It has missed Wall Street estimates in the last three consecutive quarters.

Related: CoreWeave shows how crypto-era infrastructure quietly became AI’s backbone

Ironically, some critics of the bill have pointed to recent reporting by the Wall Street Journal on the Hong Kong exchange CoinEx as evidence of the risk. CoinEx is actually a story of how to use a public ledger to track, trace, and disrupt nation state activity.

Investigators traced roughly 3.84 billion dollars in transactions tied to Iran, connecting wallets controlled by Iran’s central bank to sanctioned military networks and to funds stolen separately by North Korean hackers. That level of detail is knowable today because it happened on a public blockchain, the same visibility critics are treating as the risk.

What the Clarity Act actually contains

Clarity contains nearly twenty distinct provisions addressing anti-money laundering, sanctions, and law enforcement authority.

As the bill is currently drafted, digital asset service providers get brought fully under the Bank Secrecy Act for the first time, with risk assessments, internal controls, a compliance officer, training, audits, and suspicious activity reporting all required.

Real-time information sharing between exchanges and law enforcement gets written into statute as recognized practice — the Beacon Network model of real time interdiction, seizure and disruption — replacing voluntary industry coordination with a legal standard.

An independent working group gets tasked with developing AI-powered tools to detect and disrupt terrorist financing and money laundering in digital asset markets. Kiosk operators face wallet pinning, hold periods, and daily transaction caps for first-time users, paired with blockchain intelligence requirements to catch scammers before funds leave the platform.

After Wall Street saw preliminary earnings results for IBM, it panic sold it down 26%, vaporizing $72 billion of market value before noon. It was the worst single day for IBM since Black Monday in 1987 when its stock dropped 23%.

The 114-year-old Dow component, long a synonym for corporate stability, plunged after pre-announcing its second quarter.

Technically, it wasn’t scheduled to report full results for another week but for some reason, CEO Arvind Krishna wanted to let traders sell early.

This morning, IBM plunged below $214 per share, 26% lower than its Monday close of $290.23. Its market cap fell to $200 billion, down from $272 billion at the close of business yesterday.

By noon, trading volume had already surpassed 37 million shares — 3X its daily average.