Upbit Builds Own Ethereum Layer 2 Blockchain with Optimism Partnership

South Korea's Upbit has taken a significant step towards greater control over its Ethereum Layer 2 blockchain operations by partnering with Optimism to build its own dedicated chain, called GIWA Chain. This move marks a shift towards institutional operators preferring to own and manage their chains, rather than relying on third-party infrastructure.

According to an announcement from the Optimism Foundation, Upbit will operate its own sequencer, which determines transaction ordering and generates revenue by collecting transaction fees. This setup allows Upbit to retain full control over sequencer operations, a key requirement for regulated exchanges serving institutional clients.

The new network, GIWA Chain, has already gone live on testnet and is expected to support Upbit's expanding blockchain-based financial services. The partnership with Optimism provides technical support and failover safeguards to ensure uninterrupted service for millions of users.