The South Korean tech giants Naver and Kakao are set to finalize their blockchain merger plans with a token launch in June.
According to Newsis, the token launch will take place in the UAE under the new brand name Kaia.
Naver, Kakao Plan June Token Launch
Kakao, the operator of the KakaoTalk chat app, is the driving force behind the Klaytn blockchain and its Klaytn (KLAY) token.
Naver is South Korea’s answer to Google. It operates the Finschia (FNSA) token and blockchain protocol via its Line affiliate.
Line is also a chat app operator and has a range of blockchain and crypto operations that are mainly active in Japan.
The firms have been active in the crypto sector for some time, but appear keen to join forces in a bid to create an East Asian crypto behemoth.
In January, the firms announced their intentions to “merge” their blockchain networks. The companies explained:
“KLAY and FNSA, the native coins of the two blockchains, will be replaced by a new native coin which will be issued based on the combined total amount of KLAY and FNSA.”
Holders of KLAY and FNSA tokens, they said, “will be able to swap for the new native coin upon issuance.”
In a press briefing held in Seoul’s Gangnam on April 30, the companies said they had launched “Project Dragon,” a “consultative body” that would oversee and promote the chain integration process.
The media outlet reported that the tech giant’s “ambition” is “to surpass global layer 1 blockchains such as Ethereum and Solana.”
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Token launches are still illegal in South Korea since a 2018 ruling banned domestic firms from making initial coin offerings.
As such, the firms have created an Abu Dhabi-based foundation that will complete the launch “by the end of June.”
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Seo Sang-min, the Chairman of the Klaytn Foundation, said:
“The integration project is progressing smoothly and according to plan.”
The media outlet said the combined market capitalization of the existing Klaytn and Finschia platforms is “approximately $1.1 billion.”
It added that “once integration is complete,” Kaia was widely “expected to become Asia’s largest blockchain platform.”
Read More: South Korean Tech Giants Naver, Kakao Aim to Launch Token in June
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