Global blockchain fintech firm Terra and Kakao Ventures joined hands Thursday to develop blockchain payment solution.

Kakao Ventures would invest in helping Terra develop the blockchain-based payment solution through ‘stable coin.’ Stable coins are the cryptocurrencies, of which prices are linked to legal tender. Thus, stable coins are not subject to price fluctuation.

Terra has been creating the new digital currency by using the stable coin and blockchain-based settlement system.

The Terra Alliance comprises leading South Korean and Asian online companies, including Timon, Baemin, global shopping platform Qoo10, Southeast Asia’s largest second-hand e-commerce platform Carousell and Vietnam’s TIKI.

Kakao Ventures CEO Jung Shin-ah said the blockchain-based payment solution would stimulate e-commerce trading among the Terra Alliance member companies.

The payment solution is unprecedently sage because it is run through asset-based, algorithm-operated stable coins.

Kakao Ventures have already invested in Kakao’s blockchain platform Klaytn to develop stable coins and blockchain-based payment platform.

Terra founder and CEO Shin Hyun-sung said, “We are confident that Terra would commercialize blockchain technology.”

He added that Terra would deepen partnership with Kakao to expand the widespread use of blockchain in the economy.