South Korea's largest crypto exchange Upbit has partnered with Optimism to build a new Ethereum Layer 2 blockchain using the OP tech stack, according to an announcement on Monday. The chain, called GIWA Chain, will be the first to launch on the Self-Managed tier of OP Enterprise, meaning Upbit will operate the chain itself while the Optimism Foundation provides technical support.
Partnership and Strategic Positioning
Optimism has become a go-to solution for institutions seeking to launch dedicated blockchains. The platform has previously served centralized and decentralized exchanges including Coinbase, Kraken, and Uniswap, as well as crypto projects like World and Zora, and multinational conglomerate Sony.
Upbit, which serves upwards of 13 million registered users and has ranked as high as No. 2 globally by cumulative spot trading volume according to CoinGecko, required operational independence for its blockchain 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.
Self-Managed Tier and Operational Control
The Self-Managed tier represents a new operational model for OP Enterprise. Prior to this, most chains launched using the OP Stack operated as "fully managed" infrastructure, with the Optimism Foundation running the chain's primary sequencer, controlling the chain's configuration, and holding operational authority.
A sequencer is a core component of a rollup that determines how transactions are added into a block. Beyond sequencing transaction inclusion or denial—which may matter for compliance reasons—the sequencer also functions as a revenue generator by capturing fees users generate.
"Self-Managed is built for operators who can't cede operational control. For a regulated exchange serving Korean and global institutional users, giving up sequencer control over Upbit's chain was never going to be acceptable," Optimism wrote in a blog post. The organization noted that at Upbit's scale, "the math stops working for renting someone else's infrastructure."
Support and Safety Net Provisions
Upbit and Optimism signed a memorandum of understanding under which Optimism provides a "safety net" for Upbit, described as an institutional-grade backup including monitoring, a failover sequencer, priority patches, and 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," according to the announcement.
GIWA Chain is currently live on testnet.
Context: Other OP Stack Chains
While the Self-Managed tier appears to be new, it is worth noting that many chains launched using the OP Stack—including Base, Ink, and Unichain—have always used sequencers controlled by the chain operator rather than Optimism. Many of these OP Stack chains are part of the so-called Superchain, where independent networks share interoperability, infrastructure, and governance features and pay a small percentage of their sequencer revenue to the Optimism Collective, while remaining operationally distinct.
Earlier this year, Base, the blockchain initially built by Coinbase using the OP Stack, announced it would migrate to its own unified in-house stack.
FAQ
What is the Self-Managed tier of OP Enterprise?
The Self-Managed tier is a new operational model that allows institutions like Upbit to operate their own blockchain infrastructure while receiving technical support from the Optimism Foundation. Unlike fully managed chains where Optimism controls the sequencer and configuration, Self-Managed chains give operators full control over their chain's sequencer and operational decisions.
What is a sequencer and why is it important?
A sequencer is a core component of a rollup blockchain that determines how transactions are added into blocks. It has two key functions: it decides which transactions are included or denied (important for compliance), and it generates revenue by capturing transaction fees from users. For regulated exchanges like Upbit, controlling the sequencer is critical for operational and compliance reasons.
What support does Optimism provide under the safety net arrangement?
According to the memorandum of understanding, Optimism provides institutional-grade backup support including monitoring of the chain, a failover sequencer, priority patches, and technical guidance. This arrangement allows Upbit to maintain operational control while having access to Optimism's expertise and infrastructure backup.
