South Korea's Dunamu Unveils GIWA Web3 Infrastructure, Positioning Korea as Global Blockchain Hub

Dunamu, the operator of South Korea's largest cryptocurrency exchange Upbit, has officially launched its Web3 infrastructure brand "GIWA" at the Upbit D Conference (UDC) 2025 on September 9th, signaling Korea's ambitious push into global blockchain leadership. This strategic move represents a fundamental shift from being merely a cryptocurrency exchange to becoming a comprehensive blockchain ecosystem provider, potentially rivaling established players in the global Web3 space.

For American readers unfamiliar with Korea's cryptocurrency landscape, Dunamu's Upbit exchange holds a position similar to what Coinbase represents in the U.S. market – the dominant platform handling the majority of domestic crypto trading. However, unlike Coinbase's approach, Dunamu is now venturing into building its own blockchain infrastructure, a move that could reshape the entire Asian crypto ecosystem.

Korea's First Exchange-Developed Layer 2 Solution

The cornerstone of GIWA's infrastructure is an Optimistic Rollup-based Layer 2 mainnet, marking the first time a Korean exchange has developed its own Layer 2 solution. This technical achievement positions Korea alongside major blockchain development centers like the United States and Europe. The GIWA chain offers significantly reduced transaction times and lower fees compared to Ethereum, while maintaining compatibility with major blockchain networks including Ethereum, Base, Optimism, Arbitrum, Polygon, and Avalanche.

To put this in perspective for American investors, this development is comparable to if Coinbase were to launch its own Layer 2 blockchain (beyond its existing Base network) while simultaneously creating an integrated wallet system that seamlessly connects traditional and decentralized finance. The GIWA Wallet, launched alongside the blockchain, bridges Web2 and Web3 services, allowing Upbit's existing 12 million users to access decentralized applications without the typical complexity barriers that have hindered Web3 adoption in Western markets.

Massive Financial Ecosystem Integration

The scale of Dunamu's Web3 ambitions becomes clear when considering the financial assets under management. Upbit currently oversees approximately $60 billion in custody assets and $28.5 billion in staking assets (using current exchange rates of 1,330 KRW per USD). For American readers, this represents assets under management comparable to a mid-tier U.S. regional bank, but entirely focused on digital assets – a concentration of crypto wealth unmatched by any single U.S. platform.

This massive asset base directly integrates with the GIWA ecosystem, creating what could become the world's largest exchange-native Web3 infrastructure. Unlike American crypto companies that typically separate exchange operations from blockchain development, Dunamu's integrated approach leverages its existing user base and assets to bootstrap a comprehensive blockchain ecosystem.

Strategic Timing Amid Global Regulatory Shifts

The GIWA launch comes at a particularly strategic moment in global cryptocurrency regulation. Oh Kyung-seok, Dunamu's newly appointed CEO, emphasized during his first public appearance that "blockchain is no longer a peripheral technology but has established itself as core infrastructure for industries." This messaging aligns with the broader regulatory clarity emerging in both Korea and the United States under evolving cryptocurrency frameworks.

The timing also coincides with increasing institutional adoption globally. For American investors, Korea's proactive approach to blockchain infrastructure development represents a significant competitive move in the race for Web3 dominance. While U.S. companies have often faced regulatory uncertainty, Korean firms like Dunamu are positioning themselves to capture market share in the next phase of blockchain evolution.

International Attention and Global Ambitions

The conference's international significance was underscored by a virtual special dialogue featuring Eric Trump, Executive Vice President of the Trump Organization and son of former President Donald Trump. This high-profile participation demonstrates the growing international recognition of Korea's blockchain industry and its potential impact on global financial markets.

CEO Oh outlined an ambitious vision extending beyond Korea's borders: "We are designing trust, not money," he stated. "We will create a K-Finance model that starts in Korea, expands beyond Asia, and reaches global markets." This represents a direct challenge to established Western financial technology companies and suggests Korea's intention to export its blockchain innovations internationally, similar to how Korean cultural exports like K-pop and Korean dramas have gained global prominence.

Competitive Implications for Global Markets

Industry analysts view Dunamu's GIWA launch as a paradigm shift from exchange-centric operations to blockchain infrastructure provision. This strategy differentiates Korean crypto companies from their American counterparts, who typically focus on either exchange services or blockchain development, but rarely integrate both at this scale.

For American crypto investors and companies, GIWA represents both an opportunity and a competitive challenge. The platform's eventual international expansion could provide new trading and development opportunities, while simultaneously increasing competition for U.S.-based blockchain platforms and exchanges.

The success of GIWA could establish Korea as a major blockchain hub, potentially attracting international investment and talent away from traditional centers like Silicon Valley and New York. This geographic shift in blockchain innovation mirrors broader technology trends, where Asian countries increasingly compete with Western nations for leadership in emerging technologies.

Future Implications for Global Web3 Adoption

Dunamu's integrated approach – combining a massive user base, substantial financial resources, and now proprietary blockchain infrastructure – creates a unique model for Web3 adoption. Unlike the fragmented approach often seen in Western markets, where exchanges, wallets, and blockchain networks operate independently, GIWA offers a unified ecosystem that could accelerate mainstream adoption.

For American readers, this development suggests that the next phase of cryptocurrency evolution may be driven not just by Silicon Valley innovation, but by integrated approaches emerging from Asian markets. As Web3 technologies mature, Korea's strategy of building comprehensive ecosystems rather than specialized platforms could prove more effective in achieving mass adoption.

The GIWA launch represents more than just another blockchain platform – it signals Korea's ambition to become a dominant force in the global Web3 economy, challenging American and European leadership in this critical technology sector. As international competition in blockchain infrastructure intensifies, Dunamu's comprehensive approach may well define the future of integrated cryptocurrency and Web3 services worldwide.

Original Korean article available at: https://trendy.storydot.kr/economy-dunamu-giwa-web3-sep09-4th/