Key Takeaways
Dunamu, the operator of South Korea's largest cryptocurrency exchange Upbit, will launch its own Ethereum Layer 2 network using Optimism's OP Stack, a move designed to enhance performance and regulatory compliance for its 13 million registered users.
"What we hear consistently from the largest exchanges and institutional operators is that they want to own the chain their users transact on, not rent it," Jing Wang, director at the Optimism Foundation, said in a statement. "For a regulated exchange serving Korean and global institutional users, giving up sequencer control over Upbit's chain was never going to be acceptable.”
The new network, named GIWA Chain, has already processed nearly 100 million transactions on its testnet, according to company data. The decision to build a proprietary chain reflects Upbit's significant scale; the exchange ranked second globally in cumulative spot trading volume between 2020 and 2024, CoinGecko data shows. At that size, relying on external public blockspace can constrain operational flexibility and revenue.
By becoming the first client of the "Self-Managed" tier of OP Enterprise, Upbit will operate its own sequencer—the core component that orders transactions and generates fee revenue. This gives the exchange direct authority over network performance and transaction costs while ensuring it can meet stringent local compliance obligations. The Optimism Foundation will provide institutional-grade backup, including system monitoring and a failover sequencer.
The partnership makes Upbit the latest major crypto platform to use the OP Stack for a dedicated blockchain, joining a roster that includes Coinbase with its Base network, Kraken, and Worldcoin. The technology provides a standardized, battle-tested framework for deploying scalable Layer 2 solutions on top of Ethereum.
For Upbit, the GIWA Chain is a strategic move to create a vertically integrated ecosystem. The chain is expected to feature one-second block times and EVM compatibility, simplifying development. The launch comes as Dunamu pursues a merger with Naver Financial, a deal that could position GIWA Chain as the backbone for a massive fintech platform, with plans to integrate Korean won-backed stablecoins for payments.
This article is for informational purposes only and does not constitute investment advice.
