Upbit Confirms GIWA Ethereum Layer-2 Network as South Korea Ramps Up on Web3 Infrastructure

Upbit, South Korea’s largest crypto exchange by volume, has officially unveiled plans for its proprietary Ethereum Layer-2 network, GIWA, a major leap beyond pure exchange operations and a clear signal that Korean Web3 infrastructure ambitions are heating up.

GIWA (Global Infrastructure for Web3 Access), launched on testnet following August’s trademark filings by Upbit’s parent company Dunamu, is built atop Optimism’s OP Stack and promises one-second block times for near-instant finality—a significant upgrade over congested mainnet conditions.

At launch, core features include full EVM compatibility, a Sepolia-based testnet, and a soon-to-launch GIWA Wallet app designed to handle tokens, NFTs, and a growing suite of dApps.

The announcement was previewed during Upbit Developer Conference 2025 by Dunamu CEO Oh Kyung-seok, who challenged local developers to enter the global race for blockchain innovation, stressing that “South Korea can aggressively compete in the global financial infrastructure race, extending beyond Asia.”

Dunamu’s intent is to bring domestic developers into the Web3 fold, empowering them to build on GIWA and answering the call for Asian-native blockchain solutions as U.S. and Singapore cement their leads.

GIWA’s Technical Approach—and Centralization Questions

GIWA leverages Optimistic Rollups for scaling, integrates privacy features validated by Upbit’s deep liquidity, and features a mobile wallet for easy onboarding.

The platform also introduces GIWA ID, a non-transferable, soulbound verification token for digital identity and wallet authentication—with a 90-day grace period to resolve credential issues.

However, GIWA’s initial architecture has sparked some debate: Like Coinbase’s Base network, it will launch with a single sequencer model under operator control, raising familiar questions on centralization, MEV (maximal extractable value) capture, and transaction ordering.

Korean analysts and global observers point to this “exchange chain” pattern—where exchanges leverage vast user bases and balance ease of use over full decentralization—as a pragmatic move for onboarding but a clear trade-off on protocol autonomy.

Regulatory Context and Diversification Drive

The GIWA launch also arrives during renewed local regulatory focus. Korea’s financial watchdogs have flagged recent lending and margin products from Upbit and Bithumb, warning of risks from high-leverage exposure absent robust guardrails.

This creates a shifting backdrop as Upbit seeks to diversify after fee-based revenues stagnated with post-2021 activity declines.

For Upbit, developing GIWA isn’t just a technical upgrade: it’s a diversification play. Despite previous forays into NFTs, new product lines, and overseas expansion attempts, most revenue diversification efforts have fallen short.

GIWA, with its scaling, convenience, and the ability to capture a larger share of DeFi value flows, could become the firm’s most realistic path toward sustainable, platform-driven growth.

South Korea’s Web3 Race Gets Real

With GIWA live on testnet, a dedicated wallet in development, and developer resources already rolled out, Upbit’s entrance into the L2 race—alongside Coinbase’s Base, Binance’s BNB Chain, and OKX’s OKChain—will test how fast Korean and regional Web3 talent can be mobilized for global impact.

Whether GIWA becomes a dominant DeFi venue or a stepping stone to broader innovation, one thing is clear: South Korea is no longer content to watch from the sidelines as the next generation of crypto infrastructure is built.