South Korea’s largest crypto exchange, Upbit, has rolled out a public testnet for Giwa, its Ethereum layer‑2 blockchain project, signaling a shift from exchange operations into broader Web3 infrastructure.
The launch was officially confirmed on Sept. 9 during the Upbit D Conference 2025, following weeks of speculation fueled by trademark filings and GitHub updates.
Giwa’s technical foundation
According to its documentation, Giwa, short for Global Infrastructure for Web3 Access, is built using the Optimism Foundation’s OP Stack. The chain targets one‑second block times while inheriting security from Ethereum for settlement. A block explorer is already tracking activity, and on GitHub the project has registered over 4 million blocks since the Sepolia‑based testnet went live.
The project’s stated goal is to make Web3 infrastructure “easy and fun for everyone.” Developers can already deploy Ethereum Virtual Machine (EVM)‑compatible contracts, and a dedicated Giwa Wallet is under development to manage assets, NFTs, and dApps.
A representative from Upbit’s parent company Dunamu said the network will support Optimistic rollups for scalability, privacy features, and verified liquidity informed by Upbit’s large market data pools.
Positioning within exchange‑backed blockchains
Giwa places Upbit alongside other exchanges developing blockchain ecosystems. Coinbase launched its Base chain in 2023, while Binance created BNB Chain in 2019. In 2025, companies including Google, Stripe, and Sony have either launched or unveiled plans for their own chains, underscoring a broader race to control infrastructure.
Analysts point out that, like Coinbase’s Base, Giwa will initially rely on a single sequencer controlled by the operator. The sequencer orders transactions into batches and posts them back to Ethereum, which raises questions about centralization and the potential for exchanges to capture maximal extractable value (MEV).
“Both Coinbase and Upbit focus more on financial infrastructure innovation and utility than decentralization,” said Jay Jo, senior analyst at Seoul‑based Tiger Research. “They’ll likely operate similarly in this regard.”
Strategic rationale for Upbit
Upbit commands around 73% of South Korea’s crypto trading volume and reported $2.5 billion in daily trade turnover in the last 24 hours, according to CoinGecko. However, analysts note the exchange has struggled to diversify beyond its domestic dominance.
Past expansion attempts, including overseas platforms in Thailand and Indonesia and NFT projects under the Levvels brand, failed to gain traction. As competition intensifies and fee revenues plateau, developing its own chain may offer Upbit more sustainable growth.
“Upbit needs new growth drivers since domestic volumes declined after 2021 and competition keeps intensifying. Previous attempts at revenue diversification haven’t succeeded,” Jo said. “Building its own chain could leverage its massive user base and liquidity. This might be their most realistic diversification play.”
Dunamu CEO Oh Kyung‑seok, speaking at the conference, said South Korea could now “compete aggressively in the global financial infrastructure race,” adding that digital assets are “not a bubble but the result of evolution.”
Executives said the blockchain will follow a phased decentralization roadmap, with possible stablecoin launches depending on the outcome of domestic regulation currently under consideration by Korean policymakers.
Symbolism and cultural roots
The name Giwa comes from the curved roof tiles traditionally seen on Korean palaces, temples, and hanok houses. These tiles, made from baked clay, symbolize heritage and protection, an intentional design choice meant to embed Korean cultural roots in the blockchain’s identity.
South Korea’s crypto adoption context
The Chainalysis 2025 Global Adoption Index, released last week, highlighted South Korea’s importance, showing the country facilitated $1 trillion in on‑ramp volume between July 2024 and June 2025, second only to the United States with $4.2 trillion.
Given South Korea’s strong digital finance profile, analysts say Giwa may help anchor the exchange’s dominance while positioning it within the global Web3 infrastructure race.
Outlook
Although still in testnet, Giwa represents a significant milestone for Upbit as it looks beyond its role as an exchange. With one‑second block targets, EVM compatibility, and a wallet ecosystem in the works, Giwa’s design indicates a push for global reach.
At the same time, challenges remain. Centralized sequencer risks, regulatory questions, and the need to attract developers will determine whether Giwa succeeds or fades like Upbit’s past experiments.
Our editorial team thinks that Upbit's launch of Giwa is a brave but necessary move. It uses the exchange's liquidity and user base to build infrastructure, like Coinbase's Base. The key question will be whether Upbit can overcome regulatory constraints and prove its ability to export Korean blockchain technology to a global audience.
Gunel Ismayilova
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