Upbit confirms its Ethereum Layer 2 project GIWA, built on Optimism’s OP Stack, aiming to boost scalability and attract developers amid regulatory and competitive pressures in South Korea.
Upbit, South Korea’s largest crypto exchange by volume, officially announced GIWA, its Ethereum Layer 2 network, following earlier trademark filings. GIWA is built on Optimism’s OP Stack and offers Optimistic Rollup scalability, privacy features leveraging Upbit market data, and a mobile wallet for assets, NFTs, and dApps. Its Sepolia testnet with one-second block times is live, with a phased decentralization plan and potential stablecoin integration dependent on Korean regulation. Operated initially with a centralized sequencer, GIWA mirrors exchange-led Layer 2 models like Coinbase’s Base, raising centralization concerns. Dunamu, Upbit’s parent, hopes GIWA will foster domestic Web3 development and expand Korean participation in global markets. Analysts note the move comes as volumes decline and previous diversification attempts underperformed, suggesting GIWA could be a key strategic growth driver.