Kaia Partners With Japan Regulatory Adviser finoject to Accelerate Stablecoin, Tokenization Push

Kaia has partnered with finoject, a consulting firm founded by Japanese digital-asset regulatory specialists, to expand into Japan’s stablecoin and tokenization markets.

Kaia said July 24 that it signed a strategic memorandum of understanding with finoject to identify business opportunities in Japan’s stablecoin, tokenization and digital-asset sectors. Under the agreement, finoject will support Kaia’s expansion in Japan and help it navigate financial regulation.

finoject is a regulatory consulting firm that advises on licensing from Japan’s Financial Services Agency, as well as anti-money laundering and counter-terrorism financing systems. It also provides consulting on stablecoin and security token issuance. Its clients include Nomura Holdings, NTT Docomo and Hitachi. Last year, it led Japan’s first joint industry AML proof-of-concept project, which involved 12 companies including Hitachi and Nomura Holdings.

finoject Chief Executive Officer Kimihiro Mine previously served as the second chairman of the Japan Virtual and Crypto Assets Exchange Association, or JVCEA, and as chief executive officer of bitFlyer. He is also an outside director at Japanese yen stablecoin JPYC, giving him a broad network across Japan’s digital-asset regulatory and stablecoin sectors.

Kaia plans to use the partnership to expand cooperation with Japanese businesses and step up its stablecoin and tokenization operations. It said its blockchain is already one of the main networks on which JPYC is issued, and it aims to use that position to speed development of on-chain financial infrastructure aligned with regulatory change in Japan.

The company also plans to bring to Japan its domestic proof-of-concept experience from KB Kookmin Bank’s stablecoin project and BNK Busan Bank’s local-currency stablecoin project. It aims to broaden partnerships with Japanese financial institutions.

"Kaia is a leading Asian public blockchain that grew out of Line and Kakao, and it already has a track record in implementing Japanese yen stablecoins," Mine said. "As Japan’s stablecoin and tokenization markets grow, we will serve as a bridge connecting Kaia with Japanese businesses."

"Japan is a very important market in terms of regulatory transparency and market size," Sangmin Seo, chairman of the Kaia Foundation, said. "With finoject’s regulatory expertise and network, we will work with Japanese businesses to build new financial infrastructure."