South Korea’s native media experiences that Dunamu, the operator of the Upbit cryptocurrency change, and Naver’s subsidiary are to be consolidated right into a single enterprise group. A brand new tremendous app is anticipated to emerge.
In response to the Dong-a Ilbo report, Naver Monetary, whose largest shareholder is Naver Group, Korea’s largest portal website, and Dunamu are pursuing a complete inventory swap. It will make Dunamu a wholly-owned subsidiary of Naver Monetary and incorporate it into the Naver Group.
A Inventory Swap to Consolidate Naver, Dunamu
A complete inventory swap is a company restructuring methodology through which two corporations change inventory to unify their governance. One turns into the dad or mum holding firm, whereas the opposite converts to a 100% subsidiary.
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This course of differs from a standard merger or acquisition as a result of each corporations preserve their unique buildings, solely with a newly-formed parent-subsidiary relationship.
In response to the report, Dunamu will quickly ship its main shareholders a letter outlining these plans. Naver Monetary and Dunamu have reportedly established separate job forces to facilitate the great inventory swap.
In July, Dunamu and Naver Pay introduced a collaboration on a Korean Gained-based stablecoin enterprise. As well as, Naver Pay acquired a 70% stake in Dunamu’s unlisted inventory platform, Ustockplus, securing administration management earlier this month.
A New Tremendous App and Stablecoin Synergy
If it occurs, the inventory change will doubtless proceed with Naver Monetary issuing new shares. These shares shall be exchanged for the stakes held by present Dunamu shareholders. This is able to convert Dunamu shareholders into Naver Monetary shareholders, making Dunamu a wholly-owned subsidiary of Naver Monetary.
If the inventory swap is over, Naver, Korea’s largest portal firm, will personal two main monetary entities. These embrace Naver Monetary, the nation’s largest cell cost service, and Upbit, the biggest cryptocurrency change. This is able to successfully create a “super app” that spans purchasing, conventional finance, and crypto buying and selling.
The 2 corporations might additionally discover important synergy within the ongoing discussions for a Korean Gained-based stablecoin. Trade consultants imagine that if Naver and Upbit have been to problem a Gained-based stablecoin, they may lead the home stablecoin ecosystem. They may leverage Naver Pay’s intensive cost community and Upbit’s cryptocurrency distribution capabilities.
Dunamu revealed its intentions for a stablecoin through the Upbit Developer Convention (UDC) in early September, unveiling its personal Web3-based blockchain, GIWA Chain, and GIWA pockets. The GIWA ecosystem consists of identification verification and anti-money laundering designs to boost crypto transparency in preparation for integration with conventional finance.
