South Korean tech firms Naver, Kakao merge blockchain ventures, plan token launch in June.
Newsis reports that the token rollout will occur in the United Arab Emirates under the new brand, Kaia.
Kakao, the proprietor of the KakaoTalk messaging application, is the principal developer of the Klaytn blockchain and the Klaytn (KLAY) token.
Naver is the Google of South Korea. Through its Line affiliate, the organization manages the Finschia (FNSA) token and blockchain protocol.
Line, which is primarily active in Japan, also operates various blockchain and cryptocurrency projects and a messaging application.
Although the companies have been operating in the cryptocurrency industry for a while, they appear eager to merge to form an East Asian crypto behemoth.
The companies intended to “merge” their blockchain networks in January. The businesses elaborated:
“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.”
They stated that upon issuance, holders of KLAY and FNSA tokens “will have the option to exchange them for the new native coin.”
The companies announced on April 30 at a press briefing in Gangnam, Seoul, that they had established “Project Dragon,” a “consultative body” tasked with promoting and supervising the chain integration process.
According to the media outlet, the technology colossus’s “goal” is to “surpass layer 1 global blockchains like Ethereum and Solana.”
In South Korea, token launches remain prohibited due to a 2018 ruling banning domestic companies from conducting initial coin offerings.
Consequently, the companies have established a foundation in Abu Dhabi to finalize the launch “by June’s end.”
The Chairman of the Klaytn Foundation, Seo Sang-min, stated:
“The integration project is progressing smoothly and according to plan.”
The media outlet reported that the extant Klaytn and Finschia platforms have a combined market capitalization of “approximately $1.1 billion.”
It said that “once integration is complete,” Kaia “is anticipated to become the largest blockchain platform in Asia.”