Ethereum News Today: South Korea's Upbit Aims to Redefine Global Crypto with GIWA Layer-2 Play

South Korea’s largest cryptocurrency exchange, Upbit, is preparing to launch GIWA, a Layer-2 blockchain network built on Ethereum. This development follows trademark applications filed by Upbit’s parent company, Dunamu, under the GIWA name, covering blockchain software, digital asset infrastructure, and related technologies. While no official website or launch timeline has been confirmed, industry observers suggest GIWA could position Upbit to compete with major global Layer-2 networks like Binance’s BNB Chain and Coinbase’s Base Network [1]. The potential move underscores a broader global race for crypto market dominance, with Upbit already controlling over 80% of daily crypto trading volume in South Korea [2].

The GIWA initiative could enhance Upbit’s market share in the Asia-Pacific region, a critical growth area for decentralized finance (DeFi) and digital asset innovation. Analysts note that the launch may also support the development of Asian-native decentralized financial applications, catering to both local and global markets. This aligns with broader trends showing increased Asian demand for Bitcoin, driven by factors such as de-dollarization efforts and geopolitical uncertainties, including U.S.-China trade tensions. On-chain data from CryptoQuant’s Korean Premium Index reveals that Bitcoin prices on Korean exchanges have surged relative to global platforms, with the index rising by 130% since early July [1].

Ethereum’s Layer-2 ecosystem has seen rapid expansion in 2025, with networks like Arbitrum, Optimism, and Base attracting billions in total value locked (TVL). These Layer-2 solutions have significantly reduced gas costs and increased throughput, making Ethereum more accessible for retail and institutional users. For instance, transaction costs on Layer-2 networks can drop below a cent, enabling more affordable trading, NFT minting, and DeFi participation. This growth is further supported by advancements such as EIP-4844, a key upgrade expected to lower gas fees further, and the integration of Base with Coinbase products, which could bring millions of new users into the Ethereum ecosystem [4].

South Korea’s entry into this competitive landscape comes as global Ethereum stakeholders explore alternative business models. For example, MegaETH, an Ethereum Layer-2 protocol backed by co-founder Vitalik Buterin, announced a yield-bearing stablecoin called USDm, which aims to subsidize sequencer fees using reserves backed by tokenized U.S. Treasury bills. This approach contrasts with traditional Layer-2 platforms that rely on transaction fees for revenue. By leveraging yield from stablecoin reserves, MegaETH seeks to reduce user costs and enhance application flexibility, addressing a key pain point in Ethereum’s scalability [5].

The timing of Upbit’s potential GIWA launch is also notable, given Dunamu’s upcoming Upbit D Conference (UDC 2025) on September 9 in Seoul. The conference, hosted at the Grand InterContinental Seoul Parnas, is expected to provide further details about the project. With multiple Ethereum Layer-2 networks already in operation and new models like USDm and LINEA’s token generation event (TGE) set to launch in late September, the GIWA initiative could face stiff competition but also benefit from growing global interest in Ethereum-based solutions [3].

If the GIWA Layer-2 network aligns with the broader Ethereum ecosystem’s trajectory, it may contribute to a shift in how Asian markets approach crypto adoption. The combination of reduced fees, increased accessibility, and rising institutional interest in DeFi could position South Korea as a pivotal hub for Ethereum-based innovation. As global capital continues to seek alternatives to traditional financial systems, the GIWA launch could serve as a catalyst for further integration of blockchain technology in both regional and global financial markets [1].

Source: [1] Upbit Rumored to Launch GIWA Layer-2 Chain on Ethereum (https://finance.yahoo.com/news/upbit-rumored-launch-giwa-layer-210610619.html) [2] Upbit operator rumored to launch GIWA chain (https://cryptobriefing.com/upbit-launches-giwa-chain-blockchain-announcement/) [3] Everything You Need to Know About the Ethereum Layer-2 (https://finance.yahoo.com/news/linea-everything-know-ethereum-layer-150103397.html) [4] Ethereum's Layer 2 Boom: Lower Gas, Higher Activity & Why MEXC Traders Should Care (https://blog.mexc.com/ethereums-layer-2-boom-lower-gas-higher-activity-why-mexc-traders-should-care/) [5] MegaETH Introduces Yield Stablecoin It Says Will Fund Sequencer Fees (https://cointelegraph.com/news/ethereum-l2-megaeth-yield-bearing-stablecoin-fund)