Upbit Launches Ethereum Layer-2 Giwa Testnet to Enhance Web3 Capabilities
Upbit, South Korea’s largest cryptocurrency exchange by trading volume, announced the launch of Giwa, its Ethereum layer-2 blockchain, on testnet. Revealed at the Upbit D Conference 2025, Giwa aims to leverage the Optimism Foundation’s OP Stack to provide one-second block times while inheriting Ethereum’s security for transaction settlement.
Giwa’s Technical Foundation and Goals
Giwa, short for Global Infrastructure for Web3 Access, is designed to make Web3 infrastructure accessible and user-friendly. According to Giwa’s documentation, the blockchain builds new blocks every second, enabling near-real-time transaction finality. The testnet, named Giwa Sepolia, supports migration of Ethereum Virtual Machine (EVM)-compatible smart contracts and features a live block explorer tracking network activity.
The project builds on the Optimism Foundation’s open-source OP Stack, allowing flexibility and customization as the technology evolves. While the mainnet launch date remains undisclosed, the testnet’s development tools are available for developers to begin building and testing decentralized applications.
Context Within the Crypto Industry
Upbit’s initiative follows a trend among major crypto exchanges and technology firms launching their own layer-2 solutions or blockchains. Coinbase introduced Base in August 2023, and Binance launched BNB Chain in 2019, both enabling app development on their respective platforms. Additionally, companies like Google, Stripe, and Sony Group have announced blockchain projects or intentions for 2025.
Market Position and Significance
Upbit dominates South Korea’s crypto market, accounting for approximately 73% of local trading volume and ranking 20th globally with $2.5 billion in 24-hour trading volume, according to CoinGecko. South Korea itself is a significant player in the crypto space, with the Chainalysis 2025 Global Adoption Index reporting the country as the second-largest crypto on-ramp by volume between July 2024 and June 2025, reaching $1 trillion, second only to the United States.
Symbolism and Development Timeline
The name Giwa is inspired by traditional Korean curved roof tiles, symbolizing heritage and protection. Development activity on Giwa’s GitHub repository indicates the project has been underway for at least three weeks, with over four million blocks added to the testnet, suggesting earlier operational status than initially disclosed.
FinOracleAI — Market View
Upbit’s launch of the Giwa Ethereum layer-2 testnet signals a strategic expansion beyond exchange services into blockchain infrastructure, potentially attracting developers and users seeking fast, secure Web3 solutions. The use of the Optimism OP Stack leverages a proven technology, reducing technical risk while promising scalability and low latency. However, the absence of a mainnet launch timeline introduces uncertainty regarding adoption speed.
Investors should monitor Giwa’s developer engagement and any announcements regarding mainnet deployment. The project’s success could enhance Upbit’s competitive positioning amid intensifying global blockchain infrastructure development.
Impact: positive
