Naver and Kakao, two South Korean tech giants, are planning to finalize their blockchain merger plans in June. The token launch will take place in the UAE under the new brand name Kaia. Kakao, known for its KakaoTalk chat app, operates the Klaytn blockchain and KLAY token, while Naver, often referred to as South Korea’s Google, operates the Finschia and FNSA token and blockchain protocol through its Line affiliate. The companies announced their intentions to merge their blockchain networks in January, with the goal of creating an East Asian crypto powerhouse. Holders of KLAY and FNSA tokens will be able to swap them for the new native coin that will be issued based on the combined total amount of KLAY and FNSA.
In a press briefing held in Seoul, the companies announced the launch of “Project Dragon,” a consultative body that will oversee and promote the chain integration process. The companies aim to surpass global layer 1 blockchains like Ethereum and Solana with their merged blockchain platform. Token launches are still illegal in South Korea, so the firms have established an Abu Dhabi-based foundation to complete the launch by the end of June. Seo Sang-min, the Chairman of the Klaytn Foundation, stated that the integration project is progressing smoothly and according to plan. The combined market capitalization of the existing Klaytn and Finschia platforms is approximately $1.1 billion, and once the integration is complete, Kaia is expected to become Asia’s largest blockchain platform.
Naver and Kakao have been active in the crypto sector for some time, but their decision to merge their blockchain networks signals a strategic move to create a dominant presence in East Asia. Both companies operate popular chat apps, with Kakao running KakaoTalk and Naver operating Line. By combining their resources and expertise, they aim to establish Kaia as a leading blockchain platform in the region. The companies are looking to leverage their strengths in blockchain technology and crypto operations to compete with global players in the industry. The merger of their blockchain networks will allow for more seamless integration and enhanced capabilities for users of their respective tokens and platforms.
The creation of the Abu Dhabi-based foundation for the token launch reflects the companies’ commitment to following legal regulations and expanding their operations globally. With token launches still illegal in South Korea due to a 2018 ruling, Naver and Kakao have found a solution by conducting the launch in a jurisdiction where it is allowed. The collaborative efforts of the companies demonstrate their dedication to navigating regulatory hurdles and finding innovative ways to grow their blockchain initiatives. By establishing Kaia as a new brand and launching a token under this name, Naver and Kakao are working towards establishing a strong presence in the blockchain space and reaching a wider audience in the region and beyond.
The media coverage of the merger between Naver and Kakao highlights the significance of the partnership and the potential impact it could have on the blockchain industry in Asia. The companies’ ambition to surpass global layer 1 blockchains like Ethereum and Solana underscores their determination to become a major player in the market. As the integration of their blockchain networks progresses, the attention on Kaia as a new blockchain platform with a significant market capitalization and potential market dominance continues to grow. The strategic collaboration between Naver and Kakao sets a precedent for other tech companies in the region to explore similar partnerships and initiatives in the blockchain and crypto sectors. The success of Kaia could reshape the landscape of blockchain technology in Asia and position Naver and Kakao as leaders in the industry.
