South Korea’s Upbit Builds Ethereum L2 to Redefine Web3 Speed

Upbit, South Korea’s largest cryptocurrency exchange by trading volume, has launched Giwa, an Ethereum layer-2 (L2) blockchain on testnet, signaling a strategic expansion beyond its core trading operations. Announced at the Upbit D Conference 2025, Giwa is designed to provide near-instant transaction processing with one-second block times, leveraging the Optimism Foundation’s OP Stack while inheriting Ethereum’s security infrastructure [1]. The project, named after traditional Korean roof tiles that symbolize heritage and protection, emphasizes flexibility and aims to deliver a more accessible Web3 infrastructure [1].

Giwa’s testnet, known as Giwa Sepolia, has already recorded over 4 million blocks, suggesting early deployment of the chain before the official announcement. The testnet supports Ethereum Virtual Machine (EVM)-compatible smart contracts, enabling developers to migrate and test applications. A block explorer for tracking testnet activity is already operational, indicating active development and user engagement [1]. The project’s GitHub repository also shows that development has been underway for at least three weeks, further highlighting the platform’s rapid progress [1].

The launch of Giwa places Upbit among a growing list of major exchanges and corporations exploring or deploying their own layer-2 solutions. Coinbase’s Base and Binance’s BNB Chain serve as notable precedents, with both platforms allowing decentralized app (dApp) development and aiming to reduce transaction costs and enhance scalability [1]. In a broader trend, companies like Google, Sony Group, and Stripe have also shown interest in entering the blockchain space, either by launching their own chains or planning to do so in 2025 [1].

Giwa’s design reflects a clear focus on user experience and developer accessibility. By integrating one-second block times, the chain aims to reduce transaction latency, a critical factor for real-time dApps and DeFi protocols. The use of the OP Stack allows Upbit to benefit from ongoing upgrades and optimizations in the Ethereum ecosystem, ensuring long-term adaptability [1]. Additionally, the platform’s open-source nature allows for continuous improvements and community contributions, a feature that has become standard in the Ethereum ecosystem.

South Korea’s crypto market has been a key driver of global blockchain adoption in 2025. According to the Chainalysis 2025 Global Adoption Index, the country recorded the second-highest on-ramp crypto volume between July 2024 and June 2025, trailing only the United States. Upbit itself accounts for nearly 73% of South Korea’s crypto trading volume and ranked as the 20th largest exchange globally by 24-hour trading volume, with $2.5 billion processed in that timeframe [1]. The regulatory environment, including recent caps on crypto lending rates and bans on leveraged loans, continues to shape the country’s evolving digital asset landscape.

Source: [1] South Korean crypto exchange Upbit launches Ethereum L2 (https://cointelegraph.com/news/south-korea-crypto-exchange-ubit-launches-ethereum-l2)