South Korean tech giants Naver and Kakao are in the final stages of their blockchain merger plans, with a token launch scheduled for June under the new brand name Kaia. Kakao, the operator of the KakaoTalk app, leads the Klaytn blockchain and the Klaytn (KLAY) token, while Naver, often referred to as South Korea’s Google, operates the Finschia (FNSA) token and blockchain protocol through its Line affiliate. The two companies announced in January their intention to merge their blockchain networks, with plans to issue a new native coin based on the combined total amount of KLAY and FNSA tokens. Holders of these tokens will be able to swap them for the new native coin upon issuance.
The token launch is set to take place in the UAE since token launches are still illegal in South Korea following a ban on initial coin offerings in 2018. To facilitate the launch, Naver and Kakao have created an Abu Dhabi-based foundation that will oversee the process. Seo Sang-min, Chairman of the Klaytn Foundation, stated that the integration project is progressing smoothly and according to plan. The two companies have formed a consultative body named “Project Dragon” to manage and promote the chain integration process. The media outlet reported that the combined market capitalization of the existing Klaytn and Finschia platforms is around $1.1 billion, and once the integration is complete, Kaia is expected to become Asia’s largest blockchain platform.
Both companies have been active in the crypto sector for some time, with Line having a range of crypto and blockchain operations that are mainly active in Japan. The firms appear eager to join forces to create an East Asian crypto behemoth, with the ambition of surpassing global layer 1 blockchains like Ethereum and Solana. Through the merger, the companies aim to create a new native coin to replace KLAY and FNSA tokens, which holders can swap for upon issuance. The integration project, named “Project Dragon,” is seen as a significant step towards establishing a dominant presence in the blockchain industry in the region.
The South Korean tech giants’ collaboration aims to consolidate their strengths and resources to create a powerful blockchain platform that could potentially become the largest in Asia. The companies are working towards a token launch in June, which will introduce a new native coin resulting from the merging of existing tokens. The creation of an Abu Dhabi-based foundation to oversee the token launch demonstrates the companies’ commitment to navigating regulatory challenges and ensuring a successful integration process. The combined market capitalization of the Klaytn and Finschia platforms is currently estimated at $1.1 billion, highlighting the significant financial potential of the merger.
As token launches are prohibited in South Korea, Naver and Kakao have strategically chosen Abu Dhabi as the location for the upcoming launch to comply with regulations. The integration project led by the Klaytn Foundation Chairman is progressing well, with plans in place to complete the process by the end of June. The companies’ proactive approach to regulatory challenges and their focus on market dominance indicate a strategic vision to position themselves as a leading blockchain platform in the competitive Asian market. The merger reflects a strategic alignment between the two tech giants, signaling a new era of collaboration and innovation in the blockchain industry.
