- Ava Labs and NEC Corporation have entered into a memorandum of understanding to explore on-chain services with biometric verification on the Avalanche network.
- The technical white paper proposes a two-layer architecture that settles stablecoin payments while verifying user identity without storing biometric data on-chain.
- The initial use case targets tourist payments in Japan, which welcomed 42.68 million visitors in 2025 and already has a legal framework for stablecoins.
NEC Corporation, a renowned leader in biometric identity technology, has signed a Memorandum of Understanding with Ava Labs to delve into a new era of on-chain services combining facial recognition with the multichain architecture of Avalanche. As a result of this collaboration, both companies have released a technical whitepaper outlining an architecture for stablecoin payments with integrated identity verification.
The whitepaper addresses a structural limitation in the blockchain ecosystem where chains excel in transferring value but fall short in identifying the parties behind transactions. This limitation leads to issues such as fraud, redundant identity checks, high compliance costs, and excessive exposure of personal data. With the increasing use of artificial intelligence agents, the problem becomes more pressing.
The global leader in biometric identity, NEC, has deployed over 1,000 biometric identity systems across 70+ countries. Now, NEC and Ava Labs are collaborating to develop an architecture for biometric-verified blockchain-based services.
— Avalanche🔺 (@avax) July 10, 2026
NEC: 125 Years of Excellence
NEC, with a history of over 125 years, has been pivotal in building critical infrastructure. Their facial recognition technology ranked first in the NIST FRTE 1:N benchmark, boasting an error rate of 0.06% across a base of 12 million people. The company has implemented more than 1,000 biometric identification systems in 70 countries and was instrumental in population-scale facial recognition at Expo 2025 in Osaka.
The whitepaper introduces a two-layer architecture where NEC contributes the identity layer through FaceVC, a verifiable credential of biometric origin, and Avalanche contributes the blockchain layer distributed across three specialized chains connected via Interchain Messaging. These chains include a permissioned L1 for decentralized identity records, SETTL for stablecoin settlement with selective privacy and regulatory auditability, and the C-Chain for reward tokens and promotional NFTs. The fundamental principle is that biometric data is never stored on-chain; only the proof of successful verification is transmitted.
Japan as the Pilot Case
The initial use case will focus on payments by international tourists in Japan. With Japan surpassing 42.68 million visitors in 2025, the country has established a legal framework recognizing fiat-backed stablecoins as electronic payment instruments. Visitors will obtain their FaceVC before arrival, and at the point of sale, a single approval will complete both identity verification and settlement in one step.
The whitepaper emphasizes that this is a proposal and not a product that has been launched. Potential applications include AI agent authentication, private key protection with biometric verification, fan experiences linked to verified individuals, and public benefit programs with restricted-use funds.
