Nomura Holdings one of the oldest brokerage firms in Japan has announced a blockchain-based partnership with Line, the company behind the most successful messenger app in Japan.
In the announcement posted by Nomura Holding, the company announced that it has invested in LVC a subsidiary of South Korean company Line which owns and operates the Line messenger, Japan’s premier massaging app. The agreement between the company was signed on 24th September according to the document uploaded. Both companies did not make the terms of the agreement public.
Nomura is trying to develop its own blockchain technology-based, financial services platform to compete with other financial giants of the world so investment in LVC is one step towards their goal. The company hopes to incorporate Line’s more than 81 million strong user base in Japan into their own financial network making the partnership beneficial for both the companies.
Nomura can benefit from Line’s large user base and software background while Line can benefit from Nomura’s vast financial resources and expertise. The document states:
LINE is driving forward a self-contained Smart Portal strategy wherein the LINE messaging app serves as a gateway through which users can seamlessly connect with people, information, services, companies, and brands. Under its corporate mission of “Closing the Distance,” LINE provides high value-added services to its over 81 million monthly active users (MAU) in Japan.
LVC is Line’s new project that just launched the Bitmax exchange in September. The company has already received approval from Japan’s Financial Services Agency. Furthermore, the company is also developing the blockchain technology for Line’s own token that the company expects to launch soon. The announcement read:
Meanwhile, through the operation of the BITMAX cryptocurrency exchange, LVC is driving forward the LINE Token Economy concept founded upon blockchain technology that aims to foster a co-creative relationship between users and service providers. Finally, LINE and LINE Tech Plus Pte Ltd. (LVC’s subsidiary) is partnering with many companies to help grow and develop the blockchain ecosystem.
Both companies had been negotiating the deal since early 2019 as it was announced in January 2019 that both companies are getting into an agreement of injecting capital into LVC. Since then there has been an increase of more than 4 billion yen into LVC’s capital.
In January, the company’s capital was listed at 1.21 billion yen, however, according to the latest filings by the company as of 4th October the capital is listed at 5.06 billion, leading many to believe that the undisclosed amount of the investment by Nomura is around 4 billion yen.
Line is a Tokyo based internet company owned by South Korean Conglomerate Naver, a publicly-traded company in South Korea. Nomura is one of the oldest brokerage firms in Japan, the company has been actively investing in blockchain-based startups since last year.
In July the company invested in Quantstamp a San Francisco based company that is creating smart contracts on blockchain. The company also set up Boostry last month through its Nomura research institute program. Boostry is currently developing blockchain solutions for security trading. And the company is also part of the self-regulatory organization for crypto offering formed by five of the most prestigious brokerage firms in Japan.