LINE Corporation, a Japanese web service company, today has announced a memorandum of understanding (MOU) to form a financial business alliance focused on blockchain technology with its group company LVC, which oversees LINE’s digital asset and blockchain business units and Nomura, a Japanese financial holding company.
Specifically, the parties will consider forming a capital alliance in which LVC will increase capital by way of third-party allotment of new shares to Nomura.
Background and Objective of the MOU
The decision made by the three parties to execute an MOU is based on their intent to collaborate in blockchain business opportunities by leveraging LINE’s large user base and its secure and convenient UI/UX, and Nomura Group’s established financial business know-how.
The Nomura Group is a leading financial institution with a strong global franchise. Meanwhile, LINE Corporation is driving forward a Smart Portal strategy in which the LINE messaging app serves as a gateway through which users can seamlessly connect with people, information, services, companies, and brands without having to leave the LINE app. Under its corporate mission of “Closing the Distance,” LINE provides high value-added services to its over 78 million monthly active users (MAU) in Japan.
Execution of the alliance is subject to an evaluation of the alliance’s impact, authorization by relevant authorities, a contract determining the final understanding of the operation. The companies plan to conclude the final contract by the end of March 2019.