Dunamu, the parent company of South Korean cryptocurrency exchange Upbit, is reportedly planning a debut in the United States market once its merger with local technology giant Naver is finalized.
The company aims to launch an initial public offering on the tech-focused Nasdaq exchange shortly after the merger concludes, which is anticipated to happen later this week. This information was reported by the Seoul Economic Daily on Monday.
According to a report from The Chosun Daily on Monday, Dunamu and Naver are scheduled to hold separate board meetings on Wednesday to approve the merger. Should both boards pass the resolution, the chief executive officers of Dunamu and Naver are expected to formally announce their post-merger strategies on Thursday.
Upbit stands as the leading cryptocurrency trading platform in South Korea. Data from CoinGecko indicates that Upbit has processed $2.1 billion in trading volume over the last 24 hours. This volume is comparable to the nearly $2.2 billion recorded by its US-based competitor, Bullish, which completed its own IPO in August.
Dunamu's potential IPO would provide Wall Street with access to a highly active cryptocurrency market situated outside the United States. This market often exhibits trading patterns that diverge from those seen in other global crypto markets.
Dunamu and Naver Merger Details and Stablecoin Initiatives
In September, local media outlets reported that Naver Financial, the fintech division of Naver, intended to acquire Dunamu. This acquisition would be structured as a subsidiary through a share exchange, contingent upon the approval of both companies' boards.
Naver is recognized as South Korea's premier search engine, often referred to as the "Google of South Korea." Similar to Google, Naver offers a suite of services including email hosting, blogging platforms, mapping services, and a mobile payment processing system.
Naver also has plans to introduce a stablecoin project pegged to the local currency. This initiative aligns with South Korea's ongoing progress in enabling the use of Korean won-backed stablecoins, initially through banking institutions.
The proposed merger will also require approval from regulatory authorities. These bodies will assess whether the combination of the country's foremost crypto exchange and payment provider could lead to monopolistic practices.
Increased Crypto IPO Activity in the US
This year has witnessed a notable increase in cryptocurrency companies making their public debut in the United States, benefiting from a more favorable policy environment for the sector.
Crypto exchanges such as Gemini, Bullish, and eToro launched their IPOs earlier in the year. However, their stock performance has seen declines, mirroring broader trends in the cryptocurrency market.
Circle Internet Group, a prominent stablecoin issuer, also experienced one of the year's most successful IPOs in June. On its debut day, the company achieved a valuation of $18 billion.