Seoul: South Korea’s internet giant Naver Corp has announced the acquisition of the country’s largest cryptocurrency exchange Upbit, as per reports in the local media. The company will acquire Dunamu, the holding company behind the exchange, in an apparent strategic pivot to expand the company’s reach beyond local search into the highly favoured alternative investment medium
Following the news, shares of Naver jumped 11.4%, reflecting a strong optimism for the deal. The transaction is expected to mark the largest takeover in Korea’s cryptocurrency sector, especially as investors increasingly choose cryptocurrencies over highly hyped stocks.
Upbit accounts for more than 80% of South Korea’s crypto trading volume, with almost 16 million South Koreans now investing in cryptocurrencies in some way. For Naver, this isn’t just about boosting expanding its revenues, it will help the company expand its reach way beyond the local market.
If all goes well, the company aims to launch a Korean Won-based stablecoin, while also boosting its Naver Pay payment platform that integrates e-commerce, loans and payments.
