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Stablecoins: The Catalyst in Naver’s Fintech Expansion Through Dunamu Merger
Merger Highlights: A Transformational Partnership
Naver and Dunamu are advancing a transformative merger through comprehensive stock swaps, establishing stablecoins as a critical driver of Naver’s financial expansion strategy. Industry estimates peg the value of the merged entity at an impressive KRW 30 trillion, with the potential for a future Nasdaq listing. This partnership represents a major leap in Naver’s ambition to become a global leader in digital financial infrastructure.
According to the Korea Exchange, Naver’s stock surged on October 29, closing at KRW 274,500—a KRW 18,000 increase (7.02%) from the prior trading day. Since October 25, when news of Naver’s subsidiary, Naver Financial, exploring a merger with Dunamu surfaced, Naver’s stock has climbed over 20% in just three trading sessions.
Naver's Fintech Expansion: Stablecoins at the Core
A Strategic Pivot Toward Digital Asset Integration
The potential merger could allow Naver Financial to extend beyond its traditional payment solution business into digital asset exchanges and stablecoins. This strategic pivot has the potential to significantly enhance profitability while diversifying its service offerings. Dunamu, the operator of the prominent cryptocurrency exchange Upbit, stands to benefit from Naver’s robust platform ecosystem and established brand trust. Furthermore, collaboration with Naver could reduce Dunamu’s regulatory hurdles while enabling further expansion into payment systems and broader fintech markets.
Ahn Jae-min, an analyst with NH Investment & Securities, emphasized, “This merger could enhance Naver’s overall corporate value. Stablecoins and trading platforms are central components, unlocking new growth potential and improving Naver Financial’s profitability in the long term.”
Revenue Growth from KRW-Based Stablecoins
Stablecoins have emerged as the linchpin in the Naver-Dunamu collaboration. Analysts at Mirae Asset Securities foresee the potential issuance of KRW-backed stablecoins by Naver and Upbit generating robust annual revenues of KRW 300 billion across the industry by 2030.
Mirae Asset’s analyst Lim Hee-seok forecasts, “If revenue from stablecoin activity is evenly split, Naver could secure KRW 150 billion annually by 2030. By 2035, combined stablecoin-related revenues may climb to KRW 1 trillion, with Naver earning approximately KRW 500 billion—a major contribution to its bottom line.”
Dunamu’s Market Bounce Back
Shifting Sentiment on Dunamu’s Valuation
While initial market reactions to merger talks primarily favored Naver, Dunamu faced concerns tied to delays in its initial public offering (IPO). However, the strategic partnership and the inclusion of stablecoin initiatives have revitalized investor optimism in Dunamu’s prospects. On October 29, Dunamu’s over-the-counter share price climbed to KRW 381,000, reflecting a KRW 36,000 rise (10.43%) from the previous day. Shares traded above KRW 390,000 during the session, signaling growing confidence and demand.
This positive momentum also impacted Dunamu’s major stakeholders. Hanwha Investment & Securities saw its stock jump 17.20%, while Woori Technology Investment surged 20.40% at the day’s close.
Cho Tae-na, an analyst at Eugene Investment & Securities, stated, “Although Upbit records cryptocurrency trading volumes comparable to global competitors like Coinbase, it suffers from low international visibility, regulatory risks, and limited market diversification. The merger positions Dunamu to close this competitive gap while achieving a higher valuation.”
Strategic Valuation and Nasdaq Listing Opportunities
Unlocking the Merged Entity’s Value
Industry experts place the post-merger valuation of the combined Naver-Dunamu entity at approximately KRW 30 trillion. Ahn Jae-min of NH Investment & Securities commented, “Dunamu’s over-the-counter valuation currently sits near KRW 10.7 trillion, while Naver Financial, by comparison to Kakao Pay, could be valued at around KRW 13.6 trillion. Factoring in Dunamu’s strong profit margins, a stock swap ratio of 1:0.93 would give Naver roughly 37.9% ownership in the new entity.”
This ownership structure demonstrates the potential synergy of combining Dunamu’s crypto expertise with Naver’s established fintech network, amplifying their competitive edge across global markets.
Nasdaq Debut as a Global Digital Pioneer
One of the most anticipated outcomes of the merger is the potential for a Nasdaq listing of the combined entity. Speculation has long circulated about Dunamu’s aspirations for overseas listings, particularly on America’s Nasdaq exchange.
Cho Tae-na noted, “This merger transcends a simple business partnership—it sets the stage for the creation of a global digital finance powerhouse, laying down the groundwork for Nasdaq entry.”
He continued, “Positioning the merged entity as a global leader in digital financial infrastructure could elevate its valuation to KRW 40 trillion or even KRW 50 trillion on Nasdaq. Under this scenario, Dunamu’s stake alone could soar in value, ranging between KRW 32 trillion and KRW 40 trillion, providing existing shareholders with returns 1.3 to 1.5 times higher compared to standalone IPO valuations.”
Reshaping the Global Fintech Landscape
As Naver and Dunamu embark on this ambitious merger, expectations are high for its transformative impact. By leveraging the financial revolution driven by stablecoins, the partnership has the potential to reshape the fintech ecosystem, both domestically and globally. From a strategic pivot toward KRW-based stablecoins to the prospect of entering Nasdaq, this synergistic collaboration sets the stage for Naver and Dunamu to become dominant players in the digital financial infrastructure landscape. All eyes are on this evolving story as it promises to redefine the future of fintech innovation and global market leadership.
