LINE, LVC and Nomura to form capital alliance focused on blockchain tech

Maria Nikolova

The companies are set to form a capital alliance in which LVC will increase capital by way of third-party allotment of new shares to Nomura.

LINE Corporation, LINE’s group company LVC Corporation, and Nomura Holdings Inc (TYO:8604), have entered into a memorandum of understanding (MOU) to begin discussions on forming a financial business alliance focused on blockchain technology.

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.

Realization of the partnership is subject to evaluation of the alliance’s impact, authorization by relevant authorities, a contract determining the final understanding of the operation, and the execution of a subset of agreements necessary for the Alliance. The companies plan to conclude the Final Contract by the end of March 2019.

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, as well as to harness Nomura Group’s established financial business know-how.

The impact of the partnership on LINE, LVC, and Nomura’s respective consolidated earnings is expected to be insignificant. The companies will promptly make an announcement if the possibility of any material effects arises in the future.

Blockchain technology has been developed and adopted by many Japanese companies. In November 2018, for instance, NRI SecureTechnologies, a subsidiary of Nomura Research Institute Ltd (TYO:4307), unveiled its “Blockchain Security Monitoring Service”.

The new solution detects and reports security vulnerabilities in information systems and services that use blockchain technology. The first use will be as a monitoring service for smart contracts on Ethereum.

This service is implemented by introducing multiple scan tools in the security log monitoring service “NeoSOC” that NRI already offers. “NeoSOC” monitors the behavior of targeted smart contracts and notifies the company using this service when new vulnerabilities are identified. The company that receives such a notification can avoid an attack by stopping the use of the corresponding programs and system processes.

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