Naver acquires crypto exchange Upbit via stock swap, aiming to launch a won-pegged stablecoin and reshape South Korea’s digital finance landscape.
In a landmark deal that reshapes South Korea’s financial technology sector, Naver Financial has reached an agreement to acquire control of Dunamu, the operator of Upbit. The transaction is in the form of a share swap, which gives Naver effective control of the country’s biggest crypto exchange. The move highlights the tech titan’s foray into the digital finance arena and its plans to introduce a won-pegged stablecoin.
Naver Merges with Dunamu to Strengthen Fintech and Crypto Presence
The structure of the deal is based upon an extensive stock swap, where companies trade stocks in place of cash. This arrangement allows Naver to integrate Upbit in its operations through a governance system akin to a parent and subsidiary relationship.
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Such a method has been gaining ground in South Korea for mergers and acquisitions, as it enables both parties to retain capital and forge stronger strategic ties. For Naver, the acquisition opens up its services from the internet and payments into the rapidly evolving digital asset market.
Upbit has been strengthening its ecosystem ahead of the transaction. The exchange recently introduced GIWA, which is a blockchain that has been designed as a Layer 2 network based on Ethereum’s OP Stack. The system provides faster transactions, Ethereum’s Virtual Machine compatibility, and a multi-chain wallet designed for Web3 services.
These features are an attempt to address the demand for scalability without compromising the security standards of Ethereum. GIWA is expected to be a part of supporting future stablecoin and decentralized applications linked to Naver’s financial strategy.
The combination of the Naver Financial’s scale with Dunamu’s digital asset dominance is the result of this merger. Naver already processes annual payment volumes of 80 trillion won, which has ensured its position as a fintech leader. Dunamu in turn, operates Upbit, which is the first in the domestic market and fourth in the world in terms of trading volumes of cryptocurrencies.
Naver Moves to Integrate Payments, Crypto, and E-Commerce
Together, the firms plan to branch out into the development of stablecoins, cross-border payments and new blockchain services. Industry sources note that their cooperation could provide a bridge between everyday finance, shopping and crypto investments in Korea.
Both companies have mentioned the potential of a won-pegged stablecoin. This digital currency will link directly to South Korea’s fiat currency; therefore, it will enable secure and low-cost payments both locally and internationally. Meanwhile, Naver and Dunamu are planning to collaborate on issuing the stablecoin. Then, they intend to expand their operations overseas. As a result, insiders believe this venture could mark the beginning of a new chapter in global fintech.
The purchase is part of wider trends in the financial sector in South Korea. Regulators have promoted greater corporate governance and transparency in digital finance after scandals in the global space like the collapse of FTX. A well-established technology company is partnering with the country’s leading exchange. As a result, the deal shows confidence in the long-term role of blockchain and stablecoins in mainstream finance. Furthermore, it highlights growing trust in digital assets. Therefore, many see this partnership as a strong step toward financial innovation.
Industry analysts think Naver’s entrance will push the adoption of digital assets in Korea. By bringing payments, shopping, and cryptocurrency under one roof, Naver has the potential to build a smooth ecosystem for consumers. The move could increase competition with domestic rivals. It could strengthen Korea’s position as a hub for blockchain innovation.
