Kaia Launches Project Unify: A Stablecoin-Powered Super-App in LINE Messenger
Kaia, a public blockchain formed through the merger of Kakao’s Klaytn, LINE’s Finschia networks, and LINE NEXT, the venture arm of LINE, revealed on Monday during Korea Blockchain Week in Seoul that it will introduce a super-app powered by stablecoin within LINE Messenger. This chat platform boasts nearly 200 million active users monthly in Japan, Taiwan, and Thailand.
Overview of Project Unify
The initiative, named Project Unify, is set to enter beta phase later this year. It aims to integrate various features such as payments, remittances, stablecoin yield services, on- and off-ramps for switching between digital tokens and local currencies, and access to over 100 decentralized applications.
According to Dr. Sangmin Seo, chairman of the Kaia DLT Foundation, Project Unify is designed to be a “universally compliant” solution for stablecoin issuance and on-chain liquidity management. This project focuses on addressing a frequently overlooked element of stablecoin infrastructure and aspires to function as a “universal Stablecoin and Web3 Superapp,” which can cater to a diverse array of user needs.
Navigating Fragmented Payment Systems in Asia
Payment systems throughout Asia are still quite disjointed, with national networks operating independently. Cross-border transfers are often hindered by intermediaries, resulting in high fees and delays that can extend for days.
Despite these challenges, South Korea is currently taking steps towards the formal regulation of stablecoins. A bill is anticipated in October, aimed at establishing rules surrounding issuance, reserve (collateral) management, and internal governance for won-pegged stablecoins.
Project Unify’s stablecoin infrastructure is designed to “simplify and abstract” decentralized finance, allowing users to “transfer assets through a simple text message, stake assets for interest, and engage in DeFi activities such as lending and borrowing,” according to Seo. The platform is also positioned to serve as a hub for various regional currencies.
Eventually, the platform is expected to support stablecoins pegged to several currencies, including the Japanese yen, Korean won, Thai baht, Indonesian rupiah, Philippine peso, Malaysian ringgit, Singapore dollar, and the U.S. dollar. This will consolidate the currently fragmented market into a unified platform that manages issuance, payments, and yield opportunities throughout Asia.
Earlier in August, Kakao, a prominent South Korean internet company and member of Kaia’s governance council, submitted four trademarks connected to the Korean won, including KRWGlobal, KRWGL, KRWKaia, and KaKRW, as part of a strategy for a Korean won stablecoin on the Kaia blockchain.
However, progress has been hindered by regulatory uncertainties, with lawmakers continuing to discuss various rules regarding licensing, reserve requirements, the potential for interest on stablecoin deposits, and the overall role of banks.
