South Korea's Upbit Reimagines Blockchain Speed with Ethereum’s GIWA Layer 2

Upbit, South Korea’s largest cryptocurrency exchange by trading volume, has announced the launch of its Ethereum-based Layer 2 blockchain, GIWA, which is now operational on the testnet. The platform, developed under the Upbit brand, leverages the OP Stack technology from the Optimism Foundation to achieve one-second block times, significantly improving transaction speed while retaining Ethereum’s security properties [2]. GIWA, which stands for Global Infrastructure for Web3 Access, is designed to optimize user experience and facilitate the development of decentralized applications (dApps) for both local and global markets [2]. The move positions Upbit to compete more directly with other major players in the Layer 2 space, including Binance’s BNB Chain and Coinbase’s Base Network [1].

The development of GIWA has been in the works for several weeks, as indicated by the activity on its GitHub account and the accumulation of over 4 million testnet blocks. The testnet, known as Giwa Sepolia, includes development tools that allow for the migration of Ethereum Virtual Machine-compatible smart contracts. A block explorer is already active, enabling tracking of testnet activity [2]. While the exact timeline for the mainnet launch has not been disclosed, the testnet’s progress suggests that GIWA may have been in operation for a while. The initiative aligns with Upbit’s broader strategy to expand beyond its core role as a crypto exchange into a more comprehensive blockchain infrastructure provider.

GIWA’s integration with the Optimism Foundation’s OP Stack is a strategic move that allows for a high degree of flexibility and adaptability as the broader Ethereum ecosystem evolves. The open-source nature of the stack means that GIWA can be updated and enhanced in line with ongoing developments in Ethereum Layer 2 technologies. This compatibility is expected to attract developers looking to build scalable and secure applications on a robust infrastructure [2]. By leveraging OP Stack, Upbit aims to reduce transaction costs and enhance the overall efficiency of its blockchain, making it more accessible for users and developers alike.

The launch of GIWA follows a broader trend in the Ethereum ecosystem, where Layer 2 solutions are gaining traction as scalable alternatives to the Ethereum mainnet. These solutions are addressing key challenges such as high gas fees and slow transaction speeds, making blockchain technology more viable for everyday use. The rise of Layer 2s is not limited to Upbit, with other industry leaders such as Coinbase and Binance also deploying their own scaling solutions [1]. In 2025, Ethereum-based Layer 2 networks have seen significant growth in total value locked (TVL) and active user numbers. The emergence of these solutions reflects the market’s increasing demand for scalable, cost-effective blockchain infrastructure [5].

Upbit’s decision to invest in a Layer 2 solution is also aligned with growing macroeconomic trends, particularly in Asia, where there is an increasing demand for alternative assets. On-chain data indicates a rise in Bitcoin trading activity on Korean exchanges, with the BTC Korean Premium Index showing a 130% increase since July 14, 2025. This trend suggests a growing appetite for digital assets among Asian investors, driven in part by geopolitical uncertainties and a shift away from traditional assets such as US Treasuries [1]. As global de-dollarization trends continue, and Asian markets seek to diversify their investment portfolios, the adoption of crypto and blockchain-based solutions like GIWA is expected to accelerate.

The broader crypto ecosystem is also experiencing a surge in activity as more platforms and corporations enter the Layer 2 arena. Major companies like Google, Stripe, and Sony Group have either launched their own blockchain projects or expressed interest in doing so in 2025 [2]. This diversification of players highlights the strategic importance of Layer 2 solutions in the future of blockchain technology. For Upbit, the launch of GIWA not only enhances its technical capabilities but also strengthens its position in the competitive crypto market. With over 73% of South Korean crypto trading volume and a significant share of the global market, Upbit’s move to launch a Layer 2 solution could further solidify its leadership in the region while expanding its influence in the global crypto space [2].

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] South Korean Crypto Exchange UpBit Launched Ethereum L2 Giwa (https://cointelegraph.com/news/south-korea-crypto-exchange-ubit-launches-ethereum-l2)

[3] Upbit operator rumored to launch GIWA chain (https://cryptobriefing.com/upbit-launches-giwa-chain-blockchain-announcement/)

[4] Everything You Need to Know About the Ethereum Layer-2 (https://finance.yahoo.com/news/linea-everything-know-ethereum-layer-150103397.html)

[5] 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/)

[6] Upbit announces Ethereum Layer 2 using OP Stack (https://cryptobriefing.com/upbit-ethereum-layer-2-op-stack-announcement/)