South Korea’s Upbit has partnered with Optimism to develop a dedicated Ethereum Layer 2 blockchain using the OP Stack.
Summary
- Upbit has partnered with Optimism to build GIWA Chain, an Ethereum Layer 2 exchange where the exchange will use its infrastructure under the category of Self Managed OP Enterprise.
- Optimism said the setup allows Upbit to retain control of the sequencer, which determines transaction ordering and capture costs, while receiving technical support and failover protections.
According to the announcement from the Optimism Foundation, the new network, called GIWA Chain, will operate under the Self-Managed section of OP Enterprise, allowing Upbit to run the chain independently while receiving technical support from the foundation.
Putting control over infrastructure as a key requirement, Jing Wang, director of the Optimism Foundation, said that facility operators prefer to have their own user chains with which to rely rather than relying on third-party infrastructure. The Self-Management Model addresses that preference by placing operational responsibility, including the sequencer controller, directly with the chain operator.
Upbit takes full control of job sequencing
Under the structure outlined by Optimism, Upbit will use its own hierarchy, which determines how transactions are ordered and included in blocks. The Optimism Foundation explained that sequencers also generate revenue by collecting transaction fees, making them a compliant and valuable part of the business.
In a blog post, Optimism said regulated exchanges serving institutional clients cannot relinquish such control, adding that relinquishing control was not considered practical in Upbit’s case. The foundation compared this setup to a fully managed deployment, where the tracker operates and maintains control over the configuration.
Managing the workload remains a challenge for individual operators, according to the same blog, which noted that maintaining uninterrupted service to millions of users requires a strong infrastructure. To address that risk, the companies signed a memorandum of understanding that included monitoring systems, failover sequences, critical updates, and technical guidance as part of what Optimism described as an enterprise-level security framework.
GIWA Chain is already live on the testnet, according to the announcement, and is expected to support Upbit’s blockchain-based financial services. Previous developments involving Dunamu provide further context for that approach.
On April 29, Dunamu signed a three-way agreement with Hana Financial Group and POSCO International to implement a blockchain remittance system using the GIWA Chain. The companies said the system will move from testing to processing real transactions, and POSCO International has used it to pay for cross-border transactions.
The results from the previous proof of concept, disclosed by Hana Financial Group and Dunamu, showed that the blockchain infrastructure can reduce payment time and costs compared to the traditional SWIFT system, where messages and settlement occur separately. Firms say combining those steps allows for real-time processing of remittances.
POSCO International president Lee Gye-in said the agreement has established the foundation for long-term cooperation in digital finance, while the companies aim to finalize a working model for real-time remittances later this year based on live transaction data.
The OP Stack ecosystem continues to grow
Hope has already supported blockchain deployments at firms including Coinbase, Kraken, and Uniswap, as well as projects like World and Zora.
Many of these networks operate within the framework of a Superchain, where independent chains share interoperability standards and contribute a portion of sequencing revenue to the Optimism Collective while maintaining operational independence.
Although the self-governing class was recently introduced, Optimism pointed out that several existing OP Stack chains, including Base, have historically been self-governing. Earlier this year, Base, created by Coinbase, announced plans to move to a unified internal stack, reinforcing the trend of greater operational independence among major operators.
With more than 13 million registered users and a past ranking among the top exchanges in the world by trading volume, according to CoinGecko, Upbit’s scale influenced its decision to build and manage its infrastructure, as noted by Optimism in its announcement.
