The largest compliance encryption giant in Asia! Naver and Upbit's parent company will merge on the 27th and go public in the United States.

South Korea's largest exchange Upbit's parent company Dunamu is in the process of a comprehensive equity swap with Naver Financial, a subsidiary of tech giant Naver, to create an Asian super financial group that integrates payment, social, exchange, and encryption infrastructure, pushing the company's valuation over 34.5 billion USD, with officials revealing intentions to go public on the NASDAQ.

Naver Acquires Upbit: A Merger of Two Giants Reshaping the Asian Encryption Landscape

The Seoul Economic Daily revealed that Naver Financial and Dunamu have entered final negotiations, with a comprehensive share exchange plan expected to be finalized at the board meeting on the 26th. The exchange ratio has been raised from the previously discussed 1:3 to between 1:3.3 and 3.4, reflecting Upbit's extremely high profitability and future growth potential.

Both parties plan to make Dunamu a wholly-owned subsidiary of Naver Financial through a share swap, and the shareholders of both parties will become shareholders of the same new company after the swap. Industry insiders point out that Upbit's operating profit is currently nearly ten times higher than that of Naver Financial, which is also the main reason for the protracted negotiations over the ratios until the very last moment.

(Line parent company Naver acquires Upbit parent company Dunamu, making a strong entry into the stablecoin market)

Financial strength disparity: Upbit's profitability is too strong to ignore.

From public data, the financial scale of Upbit (Dunamu) clearly surpasses that of Naver Financial:

Operating profit: Upbit 1.18 trillion; Naver Financial 103.5 billion KRW

Total assets: Upbit 15.3 trillion; Naver Financial 3.9 trillion Korean won

Net profit: Upbit 983.7 billion; Naver Financial approximately 100 billion Korean won

In light of such a gap, some minority shareholders of Dunamu have even publicly questioned the necessity of the merger, arguing that “it would be better to issue higher dividends.”

However, some industry insiders believe that Upbit needs Naver's payment infrastructure and international expansion capabilities, while Naver needs Upbit as a potential stablecoin distribution channel.

The power struggle comes to an end: Upbit will delegate voting rights to Naver.

Although Naver's shareholding ratio will significantly decrease from the original 69% to about 17% after the merger, both parties ultimately reached a consensus, with Upbit founder Alex Kim ( Song Chi-hyung ) delegating more than half of the voting rights to Naver.

In other words, the actual decision-making power of the new group will be held by Naver.

The most important step: the merger of the two giants will go public in the United States, with a valuation of up to 34.5 billion dollars.

It is worth mentioning that, although it was not included in the formal proposals of this week's board meeting, multiple sources indicate that both parties have agreed to complete the listing on the Nasdaq in the United States within a certain timeframe after the merger.

The main reason includes that Naver has already gone public in South Korea, making it impossible for its subsidiary to go public again; however, Upbit's strong profitability has long been underestimated due to South Korea's strict regulations. If the newly merged group goes public in the U.S., it is expected to compete with the leading U.S. exchange Coinbase.

Market observer @_FORAB estimates that the post-merger valuation is approximately 13.8 billion USD, and it is expected to rise to over 34.5 billion USD after going public.

SoftBank Wins Again: From Naver to Binance Japan, the Encryption Layout Spans Japan and Korea

It is worth noting that as the major investor driving the integration, SoftBank Group led by Masayoshi Son (SoftBank) has been expanding its encryption footprint significantly in both Japan and South Korea in recent years. It is not only one of the largest strategic shareholders of Naver but has also invested in Binance Japan (Binance Japan) through its subsidiary PayPay.

From AI chips to payment applications and encryption infrastructure on both the Japanese and Korean sides, it reflects SoftBank's multinational encryption financial layout strategy.

The largest compliant encryption company in Asia is about to be born.

Today, the merger of Upbit and Naver is not just a financial consolidation, but the birth of an Asian encryption financial giant. If the listing in the United States progresses smoothly, it will rewrite the Korean encryption ecosystem and also add strength to Asia's global encryption influence.

This article discusses the largest compliant encryption giant in Asia! Naver and Upbit's parent company merged on the 27th and will go public in the United States. It first appeared in Chain News ABMedia.