LINE NEXT signs MOU with JPYC…weighing broader use of yen-backed stablecoin

LINE NEXT said on the 20th that it has signed a memorandum of understanding (MOU) with Japan’s JPYC Inc. to use the yen-backed stablecoin “JPYC” across its services.

Under the agreement, the two companies will broadly examine potential applications of yen-pegged stablecoins throughout LINE NEXT’s services. A stablecoin is a virtual asset (cryptocurrency) whose value is linked to fiat currencies and other assets to keep its price stable. The yen-backed stablecoin “JPYC,” issued by JPYC Inc. since October last year, can be exchanged 1-for-1 with the Japanese yen.

In particular, the companies will explore various avenues of cooperation—such as strengthening payment functions and how rewards are provided—centered on a plan to introduce “JPYC” into the LINE Messenger-based stablecoin wallet that LINE NEXT plans to launch. The goal is to offer Japanese users a more convenient and intuitive experience for payments and rewards.

The two companies will also review technical integration measures so that users can use yen stablecoins safely and conveniently within LINE NEXT services, and will cooperate on regulatory compliance and creating a stable user environment. In addition, they plan to jointly explore ways to use “JPYC” across a range of areas beyond Web3, and to co-develop reward programs and campaigns to boost user participation after rollout.

Ko Young-soo, CEO of LINE NEXT, said, “For Web3 to take off in earnest in Japan, it is important to provide an easy-to-understand experience that anyone can grasp through yen-backed stablecoins,” adding, “Through this cooperation, we will lay the groundwork for naturally using Web3 in everyday life and, by combining it with various services, deliver an optimized Web3 experience for users.”

Okabe Noritaka, CEO of JPYC Inc., said, “The fact that JPYC will be used in services closely tied to everyday life will be an important turning point for stablecoin usage in Japan,” adding, “It is a meaningful step forward to apply the convenience of yen-backed stablecoins in areas where users can directly feel the value—such as rewards or everyday payments.” He continued, “Together with LINE NEXT, we will build a model for using Japan yen-backed stablecoins.”