Feb 01 (cnbc.com) - Japanese messaging service Line Corp is expanding its reach into financial technology, or fintech, with a new company that offers a cryptocurrency exchange, loans and insurance.
The Tokyo and U.S.-listed firm already offers a money transfer and payment service called Line Pay, but on Wednesday announced it would launch a new division called the Line Financial Corporation to let users exchange digital currencies and use other financial services within the app.
It did not add specific details on what this would entail.
Line added that it intends to "promote research and development of technologies such as blockchain" with the creation of its new financial offering. It claimed that its payments unit had scored "major growth" in 2017, with a global annual transaction volume of more than 450 billion yen ($4.1 billion) and 40 million registered users.
The Japanese firm has 168 million monthly active users and is facing increased competition from the likes of Facebook-owned WhatsApp in its four key markets of Japan, Thailand, Indonesia and Taiwan.
Line's announcement follows a cryptocurrency heist that saw more than $500 million worth of alternative cryptocurrency NEM stolen from Japanese exchange Coincheck in a major hack last week. Japan's financial regulator then ordered the firm to improve its operations and said it would inspect all cryptocurrency exchanges following the cyberattack.
