#Japan #Tokyo #KAIA #Netstars #StarPay-X

NetStars and Kaia Form Partnership for Stablecoin Expansion

In a significant move to promote stablecoin payment adoption in Asia, NetStars, based in Tokyo, has entered into a memorandum of understanding (MOU) with the Kaia DLT Foundation, which operates the Kaia blockchain boasting over 250 million potential users and more than 420 decentralized applications (DApps). This partnership aims to broaden the utilization of stablecoin settlements, particularly in Japan's real-world retail environments.

Overview of the Collaboration

The MOU between the two organizations is a proactive approach towards actualizing NetStars' innovative payment initiative, "StarPay-X," designed to seamlessly merge traditional payment infrastructures with Web3 and digital finance solutions. The primary goal is to develop a comprehensive payment gateway that connects multiple chains, wallets, and currencies to facilitate real-world transactions, thus bridging Japan's digital finance ecosystem with the global market.

The collaboration will see NetStars' multi-cashless payment solutions, namely "StarPay" and "Stablecoin Pay," integrated with stablecoins issued and circulated on the Kaia platform. This integration aims to create an environment that enables the use of stablecoins from various Asian nations at physical retail locations in Japan. NetStars already has an extensive payment network, processing over 2 trillion yen annually with about 700,000 merchant locations and more than 15,000 partner companies.

The Importance of Stablecoins in Japan

Since the enactment of revised cash settlement laws in Japan in June 2023, regulatory frameworks around stablecoins have seen significant advancements, leading to the growing issuance and circulation of yen-pegged stablecoins. However, a notable gap remains in the availability of stablecoin usage at actual retail locations. This presents a critical challenge that NetStars aims to address through the StarPay-X initiative, fostering the development of a multi-chain, multi-wallet payment environment

By July 2026, NetStars plans to launch services that allow for one-stop payment solutions involving various stablecoins, further enhancing the consumer experience and promoting greater economic activity surrounding stablecoin usage. Recently, successful pilot implementations of stablecoin payments, including USDC transactions at Haneda Airport and collaborations with Lawson's POS systems, have set the stage for this transition into mainstream retail.

Features of the Cooperation

The partnership centers on the following key areas:

1. Integration of Stablecoins into Retail: Utilizing the StarPay merchant network, both parties will promote stablecoin retail payments, ensuring that merchants can accept new payment methods without directly holding stablecoins.

2. Expansion into Diverse Stablecoins: The feasibility of incorporating stablecoins pegged to various Asian currencies, including the Korean won and major Southeast Asian currencies, will be explored, providing a framework for inbound tourists to utilize stablecoins linked to their home currencies while allowing merchants to receive payments in yen.

3. Enhancing Exchange and Liquidity: Technical collaboration will focus on the interchangeability and liquidity of multi-currency stablecoins, supported by Kaia's on-chain foreign exchange orchestrator, Ratio, as they jointly explore settlement schemes for merchants.

The Strategic Position of NetStars

NetStars views stablecoins as a crucial growth sector for expanding its business horizons, leveraging its established merchant network, payment connections, and operational expertise. Through this collaboration, NetStars seeks to broaden the reach of StarPay and Stablecoin Pay, thereby enhancing value in inbound and cross-border transactions. In the long run, an avenue for creating new business opportunities connected through a solid payment infrastructure linking Japan and Asia will be pivotal.

Future Perspectives

Both parties will verify the practicality of this MOU through technological, regulatory, and operational evaluations. The primary goal is to establish a robust usage environment in Japan, examining the necessary stablecoins, merchant networks, service methods, and settlement mechanisms required for successful implementation.

Executive Statements

Sam Seo, Chairperson of Kaia DLT Foundation: "We are thrilled to collaborate with NetStars, a key supporter of Japan's payment landscape. To ensure stablecoin's widespread adoption, it's essential to create a real payment environment that connects the blockchain base with end users. By combining NetStars’ extensive merchant network in Japan with Kaia’s stablecoin infrastructure across Asia, we believe this partnership opens up exciting new payment possibilities."

Li Gang, CEO of NetStars: "The social implementation of stablecoins requires more than simply issuing them on the blockchain; it necessitates integrating with actual merchants and providing secure payment and settlement infrastructure. By linking Kaia’s vast user and stablecoin base with our extensive merchant network, we aim to transform stablecoins from assets to everyday payment solutions. This cooperation marks a vital step in realizing our StarPay-X vision, establishing a new payment infrastructure connecting Japan with Asia and paving the way for new business opportunities and long-term growth."

About Kaia

Launched in 2024, Kaia is an EVM-compatible public blockchain resulting from the integration of Kakao's Klaytn and LINE's Finschia, aiming to build financial infrastructure for payments, remittances, and on-chain finances. With a reach extending to hundreds of millions across Asia through messaging platforms like LINE and KakaoTalk, Kaia is at the forefront of implementing stablecoins linked to various regional currencies, including USDT, JPYC, and IDRX.
Learn more about Kaia DLT Foundation.

About NetStars

Established in 2009, NetStars is a fintech company dedicated to supporting seamless payment and digital transformation solutions through its multi-cashless payment service, StarPay. With over two trillion yen in annual processing volume and a merchant network spanning approximately 700,000 locations, NetStars stands as a powerhouse in Japan's payment sector. In September 2023, it was listed on the Tokyo Stock Exchange's Growth Market.
Explore more about NetStars.