[Digital Today reporter Lee Ho-jung] Line Next said on Monday it signed a business agreement (MOU) with Japan's JPYC Co Ltd to use the yen-backed stablecoin "JPYC" in its services.

Under the agreement, the two companies will broadly review possible uses of yen-backed stablecoins across Line Next services. A stablecoin is a virtual asset whose value is pegged to fiat currencies and other assets to keep its price stable. The first yen-backed stablecoin "JPYC", issued by JPYC since October, is exchangeable 1 for 1 with the Japanese yen.

They will explore various cooperation options, including stronger payment functions and ways to provide rewards, focusing on introducing JPYC into a Line Messenger-based stablecoin wallet that Line Next will launch. The goal is to provide Japanese users with an experience that makes it easier and more intuitive to make payments and receive rewards.

The companies will review technical linkage measures to use yen stablecoins safely and conveniently within Line Next services. They will also cooperate on compliance with relevant regulations and on creating a stable usage environment. They also plan to jointly explore ways to use "JPYC" beyond Web3 and across various areas, and to plan reward programs and campaigns so users can easily participate after the introduction.

Line Next CEO Ko Young-soo (고영수) said, "For Web3 to spread in earnest in Japan, it is important to provide an easy experience that anyone can understand with a yen-based stablecoin." He added, "Through this cooperation, we will lay the groundwork for using Web3 naturally in daily life and present a Web3 experience optimized for users by combining it with various services."

JPYC Co Ltd CEO Noritaka Okabe (오카베 노리타카) said, "The fact that JPYC can be used in services closely tied to daily life will be a major turning point for stablecoin use in Japan." He added, "It is a meaningful step forward to apply the convenience of a yen-based stablecoin in areas where users can directly feel value, such as rewards or everyday payments. We will work with Line Next to build a model for using yen-based stablecoins in Japan."