NEC and Ava Labs Propose Face-Verified Stablecoin Payments to Keep Biometrics Off-Chain

NEC has signed a memorandum of understanding with Ava Labs to explore on-chain services built around its biometric identity technology, starting with a jointly published whitepaper that proposes verifying a payer’s face and settling a stablecoin payment in a single step, without ever putting biometric data on a blockchain.

The paper pairs NEC’s identity layer with the Avalanche blockchain platform developed by Ava Labs. NEC would issue and verify a biometric verifiable credential it calls FaceVC, while the blockchain side splits work across three purpose-specific chains: a permissioned chain holding identity registries and credential revocation status, a payment-dedicated chain called SETTL for stablecoin settlement with selective auditability, and Avalanche’s public chain for rewards and promotional tokens. The design principle the companies put at the centre is that biometric data never goes on-chain; a user’s face stays in their own wallet, and the chain receives only proof that verification succeeded, plus the minimum information a transaction requires.

Both companies stress that the whitepaper describes a proposed architecture and vision rather than a launched product or proof of concept. The lead use case is in-store payment for tourists visiting Japan, where inbound travel reached a record 42.68 million visitors in 2025, according to the Japan National Tourism Organization, and where fiat-backed stablecoins are now recognised as electronic payment instruments under the amended Payment Services Act. A visitor would obtain a FaceVC before arriving and complete identity verification and payment together with a single approval at a participating merchant.

NEC brings heavyweight credentials to the identity side, having repeatedly topped the US National Institute of Standards and Technology’s face recognition accuracy tests, and it has experimented with face-based payments before, teaming with Stripe on face recognition payments. Ava Labs says the company has deployed more than 1,000 biometric identification systems across some 70 countries.

Yuya Higuchi, director of NEC’s biometrics and vision AI division, said the collaboration is a step toward weaving decentralised identifiers and verifiable credentials into society, adding that the companies see FaceVC growing in importance across identity verification, payments, AI agent authentication, and cross-border services. The partners intend to move from the whitepaper toward proof-of-concept work and, ultimately, commercialisation.

Sources: Ava Labs

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By Ali Nassar-Smith