Japanese automakers have spent billions of dollars developing connected vehicle features, but much of the vehicle data remains "locked" in each company's separate systems. Now, a U.S.-based blockchain startup is looking to change that in one of the world's most advanced automotive markets.

The decentralized vehicle data platform #DIMO today announced its expansion into the Japanese market through a joint venture with Web3 company Hakuhodo KEY3. Their aim is to target automakers struggling with high infrastructure development costs and increasingly stringent security regulations.

Mr. Ryo Hayashi, CEO of DIMO #Japan , stated in a statement: "Japan remains an integral part of the global market, with major automakers, tier-1 suppliers, and mobility innovators all concentrated in this country. Our immediate focus is to expand the DIMO platform and enable local companies to integrate with it."

Mr. Hayashi stated that this move will help eliminate "infrastructure barriers" for automakers, service partners, and third-party developers looking to "build and innovate" through their platform.

Decentralizing software for vehicles

DIMO's decentralized physical infrastructure network (DePIN) acts as a vehicle data marketplace. Drivers retain ownership of their information, while automakers access aggregated insights to develop features ranging from real-time diagnostics to usage-based insurance.

Drivers connect their vehicles through DIMO's mobile app and earn token rewards by sharing anonymous data, creating a two-sided marketplace that encourages participation. DIMO claims to currently be connecting over 180,000 vehicles globally.

The launch timing seems strategic. Japan produces about 10% of the world's car volume, including brands like Toyota, Suzuki, and Honda, according to data released by the Japan Automobile Manufacturers Association in 2024. Meanwhile, the connected car and software-defined vehicle market is expected to expand from $200 billion in 2024 to over $1 trillion by 2030, according to industry estimates.

For DIMO, this means that automakers are in urgent need of data infrastructure to monetize software, making their entry strategic as they venture into one of the fastest-growing automotive markets in Asia.

For Japanese automakers, this partnership addresses a significant pain point related to "privacy concerns and high development costs," DIMO explained. DIMO will operate within the framework of local privacy regulations and comply with the specialized needs of local OEMs (original equipment manufacturers).

This joint venture follows DIMO's decentralized governance model, requiring token holders to vote on significant treasury decisions. The community will decide on June 16 whether to allocate 500,000 USDT and 4 million DIMO tokens in exchange for a 33% stake in the Japanese entity, ensuring that stakeholders directly approve the strategic expansion rather than leaving decisions to individual executives. #anhbacong