LINE NEXT Signs MoU With JPYC for Yen Stablecoin Wallet Integration

Source: CryptoTale Original Title: LINE NEXT Signs MoU With JPYC Stablecoin Wallet Integration Original Link: LINE NEXT Inc. has signed a Memorandum of Understanding with JPYC Inc. to explore using JPYC across LINE NEXT services. The companies will study how a yen-based stablecoin can support payments and rewards. The plan includes work on a stablecoin wallet that can be accessed through LINE Messenger.

The MOU sets a framework for joint research and development. LINE NEXT and JPYC would examine how yen stablecoins may be integrated into LINE NEXT’s platform. The goal is to expand real usage for stablecoins in Japan.

Payments and Rewards

JPYC is a Japanese yen-based stablecoin issued by JPYC Inc. The company said JPYC is fully convertible at a 1:1 ratio with the Japanese yen. JPYC was first issued in October. The partnership now aims to extend the stablecoin’s use into LINE NEXT products.

A major part of the agreement focuses on a stablecoin wallet linked to LINE Messenger. LINE NEXT said the wallet would be accessible through the messaging app. The companies would explore how JPYC can be used inside that wallet.

The companies said they would evaluate reward distribution mechanisms. They plan to design programs that can issue rewards using JPYC. They also want to build user campaigns that promote stablecoin adoption. These efforts would begin after JPYC is introduced into LINE NEXT’s ecosystem.

LINE NEXT and JPYC also plan to explore broader use cases. They said they would examine opportunities beyond Web3-only services. This includes potential applications in consumer-facing services.

Technical integration remains a central focus under the MOU. LINE NEXT and JPYC review how users handle yen stablecoins safely across supported services. The work also assesses how the experience stays intuitive inside the stablecoin wallet. The evaluation covers how JPYC functions across LINE NEXT’s ecosystem.

Compliance was another key point in the announcement. The companies said they would discuss how to meet stablecoin-related regulations. They want the service to remain reliable while meeting legal requirements. The review would also consider user protections tied to regulated financial activity.

Youngsu Ko, CEO of LINE NEXT, described the goal as practical use in Japan. He said Web3 adoption depends on simple user experiences. He also said yen-based stablecoins can support daily use through rewards and payments. Ko called the JPYC collaboration an early step toward mainstream use.

Noritaka Okabe, CEO of JPYC Inc., said the integration target is everyday services. He said stablecoins gain traction when users feel direct value. He pointed to rewards and daily payments as examples. Okabe said the collaboration aims to build a leading model for yen stablecoin usage.

LINE NEXT Wallet Plans

The timing also aligns with Japan’s updated stablecoin regulatory framework. The revised Payment Services Act took full effect in 2024. Under the revision, licensed financial institutions and registered money transfer agents can issue stablecoins.

JPYC Inc. obtained registration as an Electronic Payment Instruments Service Provider in 2022. The announcement described this as a compliant position within Japan’s stablecoin framework. The regulatory structure is important for consumer-facing adoption.

The Japanese Financial Services Agency has stressed backing and risk controls. The FSA has emphasized that stablecoin issuers must maintain full backing with traditional currency deposits. It has also highlighted anti-money laundering measures.

LINE NEXT’s planned wallet would require careful implementation. The companies said they would review wallet security as part of the integration. They also plan to assess transaction speed for payments within messaging flows.

User experience design is another focus in the integration plan. The companies said interface simplicity matters for both novice and crypto-native users. They would evaluate how stablecoin actions appear in the wallet.

The partnership also leaves room for future connections across LINE services. The announcement noted possible interoperability with other LINE-linked services. Examples mentioned include shopping, gaming, and content platforms.