Dunamu, operator of South Korea’s largest crypto alternate Upbit, and high funds supplier Naver Monetary are teaming up for a merger that may create a monetary large price roughly $13.8 billion (20 trillion gained).
Each firms are set to carry separate board conferences on Wednesday to approve a complete inventory swap merger, with a joint announcement scheduled for Thursday at Naver’s headquarters in Seongnam, in keeping with a Maeil Enterprise Newspaper report.
Market members count on the mixed entity to pursue a Nasdaq itemizing that would unlock a valuation of no less than $34.5 billion (50 trillion gained) if its stablecoin and blockchain infrastructure entice international investor curiosity, in keeping with a Seoul Financial Each day report.
The merger hyperlinks Korea’s largest crypto alternate with its main funds platform at a time when the federal government is making ready new digital-asset guidelines and evaluating how stablecoins must be issued and used.
Below the proposed merger, all Dunamu shareholders will reportedly alternate their shares for Naver Monetary inventory at an estimated 1:3.3 – 3.4 ratio, making Dunamu an entirely owned subsidiary, in keeping with the report.
The inventory swap will make Dunamu Chairman Tune Chi-hyung and Vice Chairman Kim Hyung-nyeon the biggest shareholders of the mixed firm with practically 30% possession.
Naver’s stake will drop from 69% to 17%, although Dunamu is predicted to delegate greater than half of its voting rights to Naver to keep away from monopoly laws, the report says.
Executives from either side will collect on Thursday to element how Naver Pay will hyperlink with Dunamu’s blockchain and digital asset techniques.
Stablecoin technique
Peter Chung, head of analysis at Presto Analysis, informed Decrypt that the merger is pushed by each firms’ stablecoin ambitions, with Asian tech giants intently watching the deal.
In July, Dunamu revealed plans for a won-backed stablecoin with Naver Pay as lead issuer, in keeping with a KBS Information report.
The corporate has since developed GIWA, a customized Ethereum layer-2 blockchain designed for stablecoins and funds.
Naver Group has lengthy been wanting “to advance in funds,” Chung stated, noting Dunamu additionally hopes to maneuver its merchandise “past retail speculator” into broader circulation.
“Stablecoin may be the conduit for either side, and by leveraging one another’s strengths, each can obtain their objectives,” he famous.
Sentiment on prediction market Myriad, owned by Decrypt’s mother or father firm Dastan, suggests low conviction that stablecoins will cross $360B earlier than February, with customers putting only a 12.3% probability on the end result.
The merger nonetheless wants clearance from monetary regulators and the Truthful Commerce Fee, which can overview threat, compliance, and competitors points.
Chung stated the chance “exists,” however regulators will probably reply by opening the stablecoin market to extra fintech gamers, noting the nation nonetheless has “4 different licensed crypto exchanges, they’ll be all up for grabs.”
The announcement comes weeks after Dunamu was fined $24.3 million (35.2 billion gained) for violating buyer identification obligations in 5.3 million instances, with further sanctions anticipated in opposition to different Korean exchanges within the coming months, as per a neighborhood media report.
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