- Upbit launches its own Ethereum Layer 2
- Built using Optimism Foundation OP Stack
- Exchange will control its own sequencer and infrastructure
- Reflects trend of platforms owning their blockchain stack
Exchanges Move Toward Owning Infrastructure
Upbit is building its own blockchain, called GIWA Chain, using Optimism’s technology stack.
This marks a shift from relying on third-party blockchains to operating dedicated networks tailored to a platform’s users and regulatory requirements.
Why Control Matters
By running its own sequencer, Upbit can decide how transactions are processed, enforce compliance rules, and capture transaction fees.
For large exchanges with millions of users, this level of control becomes economically and operationally important.
The Rise of “App-Specific Chains”
This launch is part of a broader trend where major platforms create their own chains instead of sharing public infrastructure.
Projects like Coinbase’s Base have shown that owning the full stack can improve user experience, reduce costs, and unlock new revenue streams.
Institutional Angle
For regulated players like Upbit, controlling infrastructure also helps meet compliance requirements, which can be difficult on fully decentralized networks.
This makes self-managed Layer 2 solutions increasingly attractive for large financial institutions entering crypto.
