NEC announced on July 10 that it had signed a memorandum of understanding with Ava Labs, the developer of the Avalanche blockchain platform, to jointly explore a next-generation decentralized digital identity infrastructure that combines biometric authentication with blockchain technology. As the first outcome of the collaboration, the companies published a whitepaper describing a framework designed to streamline identity verification, payments, and remittances for foreign visitors traveling to Japan.
The collaboration aims to combine NEC’s biometric authentication technology with Avalanche’s blockchain infrastructure to develop a decentralized identity platform capable of supporting facial recognition, stablecoin payments, and verifiable digital credentials.
According to the whitepaper, the proposed system centers on a digital certificate known as FaceVC, which users would obtain before arriving in Japan. The credential would be linked to facial recognition data and stored securely in a digital wallet. Once travelers reach Japan, they would be able to authorize purchases through facial authentication, allowing stablecoin payments to be completed instantly while simultaneously receiving rewards based on traveler attributes.
The companies indicated that FaceVC had been designed to strengthen security by requiring biometric verification both when the credential is stored in a digital wallet and when it is used for transactions. Personal information, including biometric data and purchase records, would remain under the user’s control within the wallet. During payment or reward redemption, only the minimum amount of information required for the transaction would be disclosed, with the objective of balancing convenience and privacy.
Multi-chain architecture powers identity, payments, and rewards
The proposed infrastructure is built on three separate Avalanche blockchain networks, each assigned a specific operational role. A permissioned Avalanche Layer 1 network is intended to manage decentralized identifier documents and revocation information for verifiable credentials. A dedicated payment network called SETTL is expected to process stablecoin transactions, while Avalanche’s public C-Chain would handle the issuance and circulation of reward tokens and non-fungible tokens (NFTs).
These blockchain networks would communicate through Avalanche’s Interchain Messaging protocol, enabling identity verification, payment settlement, and reward distribution to operate as an integrated ecosystem rather than as isolated services.
The whitepaper also outlined plans to validate a two-layer architecture that combines NEC’s identity management capabilities with Ava Labs’ blockchain infrastructure. The companies noted that blockchain technology has increasingly been adopted for financial applications, including stablecoins and on-chain payment systems. They also suggested that the growing use of artificial intelligence agents to execute transactions and contractual activities on behalf of individuals had increased the need for secure digital identity verification and fraud prevention.
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— Avalanche🔺 (@avax) July 10, 2026
Beyond tourism services, NEC and Ava Labs plan to expand the platform into identity verification for financial institutions, cross-border payments, and authentication for AI agents while advancing proof-of-concept trials and commercialization efforts.
Broader opportunities and implementation challenges
The initiative could influence Japan’s digital identity and cashless payment landscape as the country prepares for rising international tourism. Japan has established a target of attracting 60 million foreign visitors annually by 2030, making more efficient payment systems and streamlined identity verification increasingly important. If implemented successfully, the proposed model could simplify transactions for travelers while helping businesses reduce payment processing costs and make better use of customer data through secure digital credentials.
The proposed platform seeks to improve traveler convenience through facial recognition-based identity verification and instant stablecoin settlement while preserving user privacy by keeping sensitive biometric information under individual control.
Despite the potential advantages, the companies acknowledged that widespread adoption would depend on strong safeguards for biometric data and public confidence in the security of the system. Since facial recognition information represents highly sensitive personal data, robust privacy protections will be essential. In addition, the pace of commercialization is expected to be influenced by evolving legal and regulatory frameworks governing stablecoins and digital payment systems, requiring technological development to progress alongside regulatory advancements.
