Upbit Launches Ethereum Layer 2 GIWA Chain With Optimism Support

South Korea’s largest crypto exchange Upbit has partnered with Optimism to build a new Ethereum Layer 2 blockchain using the OP Stack technology, according to an announcement on Monday. GIWA Chain will be the first blockchain to launch on the Self-Managed tier of OP Enterprise, meaning Upbit will operate the chain itself while the Optimism Foundation provides technical support.

Self-Managed Tier and Operational Control

The Self-Managed tier represents a new approach to chain deployment, designed for operators requiring full operational autonomy. Unlike fully managed chains where the Optimism Foundation runs the primary sequencer and controls chain configuration, the Self-Managed model allows exchange operators to maintain control over their infrastructure.

“What we hear consistently from the largest exchanges and institutional operators is that they want to own the chain their users transact on, not rent it,” said Jing Wang, Optimism Foundation director, in the release.

Upbit claims to serve upwards of 13 million registered users and has ranked as high as No. 2 globally by cumulative spot trading volume, according to CoinGecko. “At that size, the math stops working for renting someone else’s infrastructure,” Optimism noted in a blog post.

Sequencer Role and Revenue Control

A sequencer is a core component of a rollup that sequences how transactions are added into blocks. In addition to determining which transactions are included or denied—a consideration for compliance reasons—the sequencer also generates revenue by capturing the fees users pay.

For a regulated exchange serving Korean and global institutional users, maintaining sequencer control was critical. “Self-Managed is built for operators who can’t cede operational control,” Optimism wrote. “For a regulated exchange serving Korean and global institutional users, giving up sequencer control over Upbit’s chain was never going to be acceptable.”

Institutional-Grade Support Model

Upbit and Optimism signed a memorandum of understanding under which Optimism provides a “safety net” for GIWA Chain, including institutional-grade backup services. These services encompass monitoring, a failover sequencer, priority patches, and technical guidance.

“Taking on the full weight of chain resilience alone, running the single instance of sequencer infrastructure that millions of users depend on, is a burden few single-operator chains can credibly sustain,” Optimism noted in its blog.

According to the announcement, GIWA Chain is currently live on testnet.

Context on OP Stack Chains

While the Self-Managed tier appears to be new, many chains built using the OP Stack already employ operator-controlled sequencers rather than Optimism-managed ones. Examples include Base (initially built by Coinbase), Ink, and Unichain.

Many OP Stack chains are part of the so-called Superchain, where independent networks share interoperability, infrastructure, and governance features while paying a small percentage of sequencer revenue to the Optimism Collective. These chains remain operationally distinct.

Earlier this year, Base announced it would migrate to its own unified in-house stack, marking a shift from the OP Stack architecture.

Optimism’s Role in Enterprise Deployments

Optimism has become the primary solution for institutions seeking to launch dedicated blockchains. The platform has served centralized and decentralized exchanges including Coinbase, Kraken, and Uniswap; crypto projects such as World and Zora; and multinational conglomerate Sony.