Line Next is the web3 division of Japanese messaging platform Line while Kaia is a Sout Korea-based public blockchain.

The stablecoin initiative, called Project Unify, is set to be launched later this year.

The app will be powered by a stabelcoin and embedded inside the Line Messanger platform which has nearly 200 million monthly users across Japan, Taiwan and Thailand.

According to the announcement, the app will combine payments, remittances, stablecoin yield services and on and off-ramps for converting between digital tokens and currencies.

Chairman of the Kaia DLT Foundation, Sangmin Seo, has stated that the initiative will addess the "often overlooked" issue of stablecoin infrastructure by offering what he describes as a "universally compliant" service for stablecoin issuance and liquidity management.

Interest in stablecoins has increased of late with market participants viewing the digital currency as a way to bridge the reliability of fiat currencies with the technology of the crypto world.

This interest has further accelerated in recent weeks following the passing of the Genius Act in the US which aims to create a regulatory framework for stablecoin use.

South Korea is expected to unveil its own regulatory framework for stablecoins in October.

However, it is still relatively early days for the global stablecoin market and more clarity is needed on the role of the banks in the stablecoin industry, interoperability between blockchains as well as greater regulatory harmony between different jurisdictions.