South Korea’s largest crypto exchange, Upbit, has confirmed plans to launch its own Ethereum Layer-2 network called GIWA, part of a broader move to build domestic Web3 infrastructure.
Unveiled following trademark filings in August and teased by Dunamu CEO Oh Kyung-seok at the Upbit Developer Conference, GIWA is being developed on the Optimism OP Stack and currently runs a Sepolia testnet. The chain targets one-second block times and will use Optimistic Rollups to scale transactions. Documentation also describes privacy features, verified liquidity feeds sourced from Upbit’s market data, and a dedicated mobile GIWA Wallet for assets, NFTs and dApps.
Dunamu’s blockchain arm Lambda256 says it has supported the project from day one, positioning GIWA as a platform for Korean and global builders to deploy new services. The network plans phased decentralization, but some features—such as a potential stablecoin—are conditional on evolving Korean regulation.
Security and governance questions are front of mind. Like Coinbase’s Base, GIWA is expected to start with a single sequencer under operator control, a model that centralizes transaction ordering and can increase the potential for MEV capture. Regulators have flagged that exchange-operated layer-2 chains might function effectively as trading venues, which could invite additional oversight.
For Upbit, launching GIWA is a clear diversification play: domestic trading volumes have fallen since 2021 and the exchange needs new growth drivers beyond fee-based services. The move leverages Upbit’s large user base and liquidity, but it also raises trade-offs between utility, control and regulatory exposure.
Risk note: GIWA is in testnet; technical risks, centralization concerns and regulatory outcomes remain uncertain. This is not investment advice.
Source: Decrypt. Read the original coverage for full details.