(Bloomberg) -- Japanese advertising firm Hakuhodo DY Holdings Inc. will set up a joint venture with one of the nation’s best-known crypto entrepreneurs to help clients build so-called Web3 business.

Hakuhodo Inc., a flagship subsidiary of the Tokyo-based firm, plans to launch the startup this year with Stake Technologies Pte., a Singapore-based Web3 infrastructure developer headed by Sota Watanabe, according to a statement on Tuesday.

The move follows a pledge made earlier this year by Japanese Prime Minister Fumio Kishida’s administration to help grow Japan’s Web3 industry, which includes business built around crypto technology. As part of that, the government aims to change the tax code to make it less expensive for companies to issue and retain crypto tokens.

Hakuhodo has been strengthening collaboration with Stake Technologies, known for its Astar blockchain, to tap demand from Japanese firms looking to enter into crypto-related business.

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Author: Takashi Nakamichi and Nao Sano