Upbit Operator Dunamu, Naver Financial to Vote on Merger as Market Eyes Possible IPO Path

Dunamu, relation of South Korea’s largest crypto exchange Upbit, and apical payments supplier Naver Financial are teaming up for a merger that volition make a fiscal elephantine worthy astir $13.8 cardinal (20 trillion won).

Both companies are acceptable to clasp abstracted committee meetings connected Wednesday to o.k. a broad banal swap merger, with a associated announcement scheduled for Thursday astatine Naver's office successful Seongnam, according to a Maeil Business Newspaper report.

Market participants expect the combined entity to prosecute a Nasdaq listing that could unlock a valuation of astatine slightest $34.5 cardinal (50 trillion won) if its stablecoin and blockchain infrastructure pull planetary capitalist interest, according to a Seoul Economic Daily report.

The merger links Korea’s largest crypto speech with its starring payments level astatine a clip erstwhile the authorities is preparing caller digital-asset rules and evaluating however stablecoins should beryllium issued and used.

South Korea’s Naver Financial 'Discussing' Upbit Stock Swap, Eyeing Stablecoin Market

Under the projected merger, each Dunamu shareholders volition reportedly speech their shares for Naver Financial banal astatine an estimated 1:3.3 – 3.4 ratio, making Dunamu a wholly owned subsidiary, according to the report.

The banal swap volition marque Dunamu Chairman Song Chi-hyung and Vice Chairman Kim Hyung-nyeon the largest shareholders of the combined institution with astir 30% ownership.

Naver's involvement volition driblet from 69% to 17%, though Dunamu is expected to delegate much than fractional of its voting rights to Naver to debar monopoly regulations, the study says.

Executives from some sides volition stitchery connected Thursday to item however Naver Pay volition nexus with Dunamu’s blockchain and virtual plus systems.

Peter Chung, caput of probe astatine Presto Research, told Decrypt that the merger is driven by some companies' stablecoin ambitions, with Asian tech giants intimately watching the deal.

In July, Dunamu revealed plans for a won-backed stablecoin with Naver Pay arsenic pb issuer, according to a KBS News report.

The institution has since developed GIWA, a customized Ethereum layer-2 blockchain designed for stablecoins and payments.

Naver Group has agelong been looking “to beforehand successful payments,” Chung said, noting Dunamu besides hopes to determination its products “beyond retail speculator” into broader circulation.

“Stablecoin tin beryllium the conduit for some sides, and by leveraging each other's strengths, some tin execute their goals,” helium noted.

Sentiment connected prediction marketplace Myriad, owned by Decrypt’s genitor institution Dastan, suggests debased condemnation that stablecoins volition transverse $360B earlier February, with users placing conscionable a 12.3% accidental connected the outcome.