BitcoinWorld Won-backed Stablecoin: Dunamu’s Pivotal Giwa Chain Initiative for South Korea’s Digital Future The cryptocurrency world in South Korea is buzzing with exciting news! Dunamu CEO Oh Kyung-seok recently made a pivotal announcement that could reshape digital finance in the region. On September 9th, Oh revealed that Dunamu, the operator of the major South Korean crypto exchange Upbit, plans to support a won-backed stablecoin through its innovative proprietary Layer 2 chain, Giwa. This development marks a significant step towards integrating digital assets more deeply into the traditional financial system, promising stability and accessibility for users. What Does a Won-Backed Stablecoin Mean for South Korea? For those new to the concept, a stablecoin is a type of cryptocurrency designed to maintain a stable value. Unlike volatile assets like Bitcoin or Ethereum, stablecoins are typically pegged to a reserve asset, such as fiat currency (like the US dollar or, in this case, the South Korean Won), gold, or other cryptocurrencies. The introduction of a won-backed stablecoin is particularly impactful for South Korea. It offers a digital asset that mirrors the value of the South Korean Won, providing a stable medium for transactions and savings in the crypto space. This stability can reduce risks associated with price fluctuations, making digital payments and remittances more predictable. Moreover, it paves the way for greater regulatory clarity and acceptance within the domestic market, fostering trust among both institutional and retail users. Giwa Chain: The Backbone of South Korea’s New Won-Backed Stablecoin ? At the heart of this initiative is Giwa, Dunamu’s proprietary OP Stack-based Layer 2 chain. CEO Oh Kyung-seok highlighted Giwa’s design as “finance-friendly” during the USDC 2025 event, emphasizing its robust architecture built for stable operations. A Layer 2 solution like Giwa is crucial because it helps scale blockchain networks, offering faster and cheaper transactions compared to Layer 1 blockchains. This technical foundation is essential for supporting a high-volume, stable digital currency. Giwa’s design is not just about speed and cost; it’s also about reliability. The chain’s stability is directly linked to the extensive operational experience Dunamu has gained from running Upbit, one of the largest and most reliable crypto exchanges in South Korea. This deep understanding of market dynamics and user needs positions Giwa as a strong contender to facilitate the stable issuance and distribution of the won-backed stablecoin . The Power of Upbit’s Expertise and KYC Integration for the Won-Backed Stablecoin Dunamu’s decision to leverage its existing infrastructure and expertise from Upbit is a strategic move. Upbit’s long-standing operation in the South Korean market, coupled with its experience in managing staking services, provides a solid bedrock for Giwa. This operational prowess ensures that the stablecoin will be issued and distributed reliably and securely within the country. The expertise gained from managing a high-volume exchange is invaluable for maintaining the integrity and stability of a digital asset like a stablecoin. A critical aspect mentioned by CEO Oh is the potential integration of Know Your Customer (KYC) procedures. If required by regulations, Giwa could seamlessly utilize the existing KYC information of Upbit users. This capability offers several advantages: Streamlined Onboarding: New users would likely experience a smoother onboarding process, as their identities are already verified. Enhanced Security: Leveraging established KYC protocols strengthens the overall security framework, combating illicit activities. Regulatory Compliance: It positions the won-backed stablecoin for easier compliance with financial regulations, a key factor for widespread adoption. What’s Next for the Won-Backed Stablecoin and Giwa? The announcement signals Dunamu’s ambition to be a frontrunner in the evolving digital finance landscape. By providing a stable, regulated, and widely accessible digital currency, they are not only catering to the existing crypto community but also opening doors for broader mainstream adoption. The success of this initiative could set a precedent for other nations considering their own fiat-backed digital currencies. While the exact launch timeline and specific regulatory frameworks are yet to be fully detailed, the vision is clear: to create a secure and efficient digital financial ecosystem in South Korea. The won-backed stablecoin on Giwa chain has the potential to transform how South Koreans interact with digital money, offering a blend of traditional financial stability with blockchain innovation. Frequently Asked Questions (FAQs) Q1: What is a won-backed stablecoin? A1: A won-backed stablecoin is a type of cryptocurrency whose value is pegged to the South Korean Won (KRW). This means one stablecoin unit is designed to always be worth one South Korean Won, providing price stability. Q2: What is Giwa chain? A2: Giwa chain is Dunamu’s proprietary Layer 2 blockchain built on the OP Stack. It’s designed to be “finance-friendly” and aims to provide a stable and efficient platform for digital assets, including the new won-backed stablecoin. Q3: How does Upbit’s expertise contribute to this project? A3: Dunamu, the operator of Upbit, leverages its extensive experience in running a major crypto exchange and its staking services to ensure the stable operation of the Giwa chain and the secure issuance and distribution of the stablecoin. Upbit’s existing KYC information could also be utilized for regulatory compliance. Q4: What are the main benefits of a won-backed stablecoin? A4: The main benefits include price stability (reducing volatility risks), potential for faster and cheaper transactions, enhanced regulatory clarity, and greater trust and adoption within the South Korean financial market. Q5: When is the won-backed stablecoin expected to launch? A5: While Dunamu CEO Oh Kyung-seok announced the intention to support a won-backed stablecoin, specific launch timelines and regulatory details are yet to be fully disclosed. The announcement indicates a strategic direction for the future. Q6: Will existing Upbit users automatically have access to the won-backed stablecoin? A6: The announcement mentioned that if KYC procedures are required, Giwa could easily leverage existing Upbit user KYC information. This suggests a potential for streamlined access for Upbit users, but specific access mechanisms will be detailed closer to launch. This is a groundbreaking development for the South Korean crypto landscape. Share this article with your friends and colleagues to keep them informed about the exciting future of digital finance! To learn more about the latest crypto market trends, explore our article on key developments shaping stablecoins institutional adoption. This post Won-backed Stablecoin: Dunamu’s Pivotal Giwa Chain Initiative for South Korea’s Digital Future first appeared on BitcoinWorld and is written by Editorial Team