From Base to GIWA: Why crypto exchanges need their own blockchains

Which “exchange blockchains” exist

It’s worth starting with the two largest and most successful projects — the blockchains launched by Binance and Coinbase. Back in 2019, Binance introduced BNB Chain (formerly Binance Smart Chain), which became one of the most popular ecosystems for DeFi and NFT. The project’s goal was simple: reduce transaction fees and provide developers with a space to build applications on top of a fast and scalable network.

Coinbase moved in the same direction by launching Base in 2023, a layer-2 solution built on the OP Stack. Thanks to the authority of the U.S. exchange, Base quickly became popular among developers seeking to deploy their projects in a safer and more recognizable ecosystem.

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Among smaller platforms, OKX launched OKT Chain in 2021, while Huobi (now HTX) developed its own HECO Chain to expand the use of decentralized applications and integrate internal liquidity. In the same year, Crypto.com launched Cronos, focused on EVM compatibility and DeFi services, while KuCoin introduced the KuCoin Community Chain (KCC) to give its users and partners tools to build apps within a more “in-house” ecosystem. But what larger goals do these exchanges pursue?

Why exchanges create blockchains

For exchanges, owning a blockchain is not just a technological tool but a long-term strategy. It’s a way to move beyond being a simple intermediary between crypto buyers and sellers. By controlling a blockchain, exchanges can set the rules of the ecosystem, establish standards for interaction, and directly influence which projects and services develop within their networks.

Having their own blockchain also helps exchanges retain users and developers within their ecosystems. Instead of losing intellectual capital to competitors, they build platforms where it’s convenient to launch decentralized apps, trade, issue tokens, and access DeFi services. This creates a self-sustaining cycle: the more projects are deployed on the chain, the more attractive it becomes for new participants.

Moreover, such a step brings additional revenue streams. Exchanges benefit from transaction fees, while the growth of native tokens strengthens their financial positions. Each new chain becomes a kind of “financial island,” where the exchange not only concentrates liquidity and customers but also sets its own trends.

That’s why Upbit’s launch of the GIWA blockchain is no coincidence. It fits neatly into the broader trend of leading trading platforms evolving into self-sufficient ecosystems. Today, having a proprietary blockchain has become an essential tool for any exchange to strengthen its influence, expand its audience, and lay the foundation for long-term revenue growth.

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