Japanese tech giant Line has entered into an agreement with two major firms that will see the entities leverage blockchain technology to set up a new financial service, according to a corporate announcement published on October 4. The three, LINE, LVC, and Nomura Holdings, finalized the deal on September 24, 2019.

LINE is a communication app that enables users to make free voice calls and send messages for free across the globe. On the other hand, Nomura Holdings is a financial holding company that offers banking and other financial services subsidiaries. LVC, a subsidiary of LINE Corporation, operates and runs Bitmax cryptocurrency exchange for the Japanese market.

The Agreement

The deal comes as part of a resolution made early this year, where the three firms had agreed to explore the blockchain technology jointly. The agreement will see all parties utilize the large LINE user base to establish a secure and convenient UI/UX. Nomura’s wealth of experience in the financial sector will be applied in maximizing blockchain-based business opportunities.

LINE is establishing a token economy backed by blockchain technology that will be supported by the BITMAX trading platform. The token platform seeks to link users and service providers to develop a co-creative relationship.

The three parties noted that the blockchain deal might affect their consolidated earnings in the future. The firms have promised to make public the impact of their collaboration.

Overview of the Corporations

The Nomura Group that seeks to enrich society by providing expert knowledge on financial markets has an annual capital of JPY 594.493 billion, while the latest net revenue stands at JPY 1.116,770 trillion. The Tokyo based firm has 28,112 employees.

LINE Corporation that also offers content, web service businesses, and AI businesses, enjoys a capital of JPY 96.448 billion with the consolidated revenue standing at JPY 207.182 billion.

The current workforce of 2,269 employees power operations on the platform. On the other hand, LVC Corporation has a capital of JPY 5.06 billion as of October 4, 2019.

It remains to be seen how these would work out as the platform is likely to be launched sometime in 2020. This partnership shows the growing attention that blockchain technology is receiving from different sectors.