Japan's NEC, Crypto Garage to co-develop crypto custody system

NEC Corporation has announced a joint project with digital asset firm Crypto Garage to develop a cryptocurrency custody system. The system, aimed at financial institutions, institutional investors, and corporations, is slated to begin development this year. The partners aim to launch the service in 2027, aligning with the scheduled implementation of Japan's revised Financial Instruments and Exchange Act. Under the agreement, NEC will handle the development of applications for financial institutions and their clients, along with building the system's infrastructure. Crypto Garage will be responsible for the private key management technology and the development of a backend compliant with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.