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LINE and Nomura form Partnership to Develop Blockchain Financial Services


Japanese messaging app LINE has entered into a final agreement with financial giant Nomura Holdings to form a blockchain partnership.

In an announcement dated Oct. 4, Nomura Holdings, the parent company of Nomura Securities, said it made an investment in LVC, a subsidiary of South Korean-controlled LINE, following an agreement signed on Sept. 24.

Partnership Agreement

Nomura said that the venture will be developing financial services utilizing blockchain technology. The partnership will make use of LINE’s large user base—81 million in Japan—and well-developed user experience and Nomura’s financial experience and expertise.

The partners had signed a memorandum of understanding at the end of January 2019, with the intention to sign a formal agreement by the end of March. The earlier disclosure mentions that LVC’s capital will be increased through a placement of new shares to Nomura.

The Nomura Group is a financial institution that has a strong global franchise and that aim at offering solutions to clients in the financial capital markets.

Focus on blockchain technology

LINE, a messaging app is working on a self-contained Smart Portal strategy in which LINE will serve as a gateway through which users can connect with people, information, services and companies, among others. In addition to it, the BitMax cryptocurrency exchange will play an integral role in driving forward the LINE Token Economy concept that is based on blockchain technology.

In May 2018, Nomura formed Komainu with Ledger and Global Advisors to develop digital custody solutions. In July this year, the company invested in San Francisco-based Quantstamp, a smart-contract security company, and in September this year, it set up Boostry with Nomura Research Institute. The venture is developing blockchain solutions for trading securities. Just last week, Nomura and five other brokerages formed a self-regulatory organization (SRO) for crypto offerings.

Japanese regulators may have been cautious due to the 2014 collapse of Mt Gox and the 2018 hack of Coincheck; but they are warming to crypto with approval of new exchanges, and issuance of guidelines on fund investment in crypto.

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