Upbit Launches Giwa Ethereum Layer-2 on Testnet in South Korea

South Korea’s largest crypto exchange, Upbit, has surprised the market by launching its own Ethereum Layer-2 network called “Giwa”, now live on testnet. For years, Korean traders have struggled with high Ethereum gas fees and slow transaction speeds. Giwa’s debut signals a shift: exchanges aren’t just places to trade anymore—they’re building the very infrastructure users rely on. With South Korea already ranked among the world’s top crypto markets, Giwa could become a key player in shaping Ethereum’s next wave of adoption.

What is Giwa?

Giwa is Upbit’s newly launched Ethereum Layer-2 network, introduced first on testnet. In simple terms, an L2 is designed to handle transactions more efficiently by processing them off the Ethereum mainnet, then settling back securely on-chain. This reduces congestion, lowers fees, and speeds up activity — something Korean users have long demanded.

Unlike general-purpose L2 projects such as Optimism or Arbitrum, Giwa carries a unique angle: it is exchange-backed. That means Upbit can directly connect millions of its trading users with a faster, cheaper Ethereum experience without needing third-party bridges. For retail investors, this could translate into cheaper DeFi trades, smoother NFT purchases, and faster on-chain transfers. The project’s testnet phase will help Upbit gather data on performance and user demand before rolling out a mainnet launch, positioning Giwa as a practical L2 tailored for everyday crypto users.

Why South Korea’s Entry Matters 

South Korea is not just another crypto market — it’s one of the top five in the world, with trading volumes that often rival the U.S. and Japan. Yet, Korean users face some of the highest fees and strictest regulations, making innovation especially challenging. That’s why Upbit launching Giwa is so significant.

For regulators, it shows a major exchange experimenting with infrastructure that could align with compliance standards while still improving user experience. For the market, it’s proof that Asia is no longer waiting for U.S. platforms to lead Ethereum scaling solutions. With Upbit controlling over 70% of South Korea’s exchange market share, Giwa has a built-in user base that could test adoption at scale. If successful, this move could set the stage for exchange-led Ethereum L2s to spread across Asia, bringing cheaper, faster transactions to millions of traders and retail investors.

Unique Features of Giwa 

What sets Giwa apart is its positioning as a retail-focused Ethereum Layer-2 built by an exchange, not a developer collective. According to early details from Upbit, Giwa’s testnet is targeting 1-second block times, a clear improvement compared to Ethereum’s ~12-second average. If mainnet performance holds up, Giwa could process thousands of transactions per second at fees up to 90% lower than the mainnet.

Another unique angle is direct exchange integration. While projects like Optimism or Arbitrum require users to bridge assets, Giwa could allow Upbit’s 9 million registered users to transact seamlessly between the exchange and the L2. This gives Giwa a ready-made adoption funnel that few L2s can match.

By blending scalability (faster blocks, lower fees) with accessibility (exchange-native access), Giwa aims to position itself as a practical Layer-2 solution for everyday Korean traders and potentially, a gateway for international users once mainnet launches.

User Impact

For South Korean traders, Giwa could finally ease one of Ethereum’s biggest pain points: high gas fees. On-chain activity that once cost several dollars may drop by up to 80–90%, opening doors for smaller investors to use DeFi apps, trade NFTs, or move tokens without worrying about costs.

Because Giwa is tied directly to Upbit’s exchange platform, users may not need complex bridges or external wallets. Instead, they could transfer funds seamlessly between the exchange and the L2. This lowers barriers for newcomers while still offering advanced tools for experienced traders, making Giwa a practical test case for exchange-led Ethereum scaling.

Related: South Korea’s FSS Urges Asset Managers to Limit Crypto Exposure in ETFs

Conclusion

The launch of Giwa on testnet shows that Upbit is moving beyond its role as South Korea’s top exchange to become a builder of Ethereum infrastructure. By offering faster transactions and lower costs, Giwa could directly improve the experience of millions of traders and developers. While still early, the project signals a broader shift: exchanges are no longer just gateways to crypto, they are shaping the networks themselves. For Ethereum users, Giwa represents a step toward cheaper, more accessible blockchain activity in one of the world’s most active markets.

FAQs

What is Giwa by Upbit?

Giwa is a new Ethereum Layer-2 network launched on testnet by South Korea’s leading exchange, Upbit. It aims to lower fees, speed up transactions, and make on-chain activity easier for traders and developers.

How does Giwa benefit Ethereum users?

By processing transactions off-chain and settling back to Ethereum, Giwa can reduce costs by up to 80–90%. This makes DeFi trading, NFT purchases, and token transfers far more affordable for everyday users.

Can international users access Giwa testnet?

For now, Giwa is primarily focused on Upbit’s Korean user base. However, once mainnet launches, the network may expand globally, offering access to users outside South Korea.

Why is Upbit launching its own Ethereum L2?

Upbit is moving beyond exchange services to build infrastructure. Giwa helps the exchange give its users faster, cheaper blockchain access while also positioning South Korea as a key player in Ethereum scaling.