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Nomura Holdings Partners with LINE’s LVC to Explore Blockchain-Based Financial Services

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Japan’s oldest brokerage firm has partnered with the country’s most popular messaging service operator, establishing its first blockchain-focused venture. On October 4th, Nomura Holdings proudly announced that the company has joined hands with LVC, which is a subsidiary of the instant messaging app, LINE. The announcement came as the aftermath of an official pooling agreement signed between the three companies on September 24.

Although the terms of the partnership have not been disclosed yet, Nomura has affirmed that the venture aims at implementing new business projects especially creating blockchain-powered financial services. As a part of the deal, financial giant, Nomura, has invested in LVC aiming to exploit blockchain technology enabling LINE users to trade major cryptocurrencies. Whilst Nomura could be leveraging on Line’s massive user base, which hosts 81 million users only from Japan, LINE’s and LVC’s aim would be to take benefits of Nomura’s extensive experience and expertise in the financial domain.

Here, it’s also worth noting that LINE has recently launched its BitMax crypto exchange in Japan. The company also launched its investment services wing, LINE Securities, in August. On top, LINE already owns a blockchain network, called LINK Chain, powered by LINK tokens, which, at present, mainly serves as a rewards system. LINK tokens are exclusively available at BITBOX and can be used to pay for all the services available on the LINE app. The strategy behind this, also dubbed as the LINE Token Economy, is to promote the use of LINK tokens for all transactions across its network.

Only last month, Nomura Holdings, on the other hand, invested $14 million in a Coinbase-backed token issuance protocol called Securitize. Additionally, they are also working with multiple other projects in the cryptocurrency segment such as Tezos (XTZ). Last year, the company came up with Komainu along with Ledger and Global Advisors having the goal of creating digital custody solutions. In September, Nomura established Boostry with Nomura Research Institute which is currently creating blockchain-based platforms for trading financial securities.

The Japanese authorities, though, have been particularly careful about monitoring crypto start-ups since the devastating hack of Mt Gox exchange in 2014, followed by the hack of Coincheck in January 2018. However, the country is welcoming new crypto projects. Alongside providing licenses to upcoming digital currency exchanges, the FSA has also provided stringent regulatory guidelines on digital asset fund investment.

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