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Upbit’s reach hits one in four South Koreans, XRP emerges as top traded token

Web3 & Enterprise·January 02, 2026, 7:20 AM

Upbit, South Korea’s largest cryptocurrency exchange operated by Dunamu, announced on Jan. 2 that its user base surpassed 13 million by the end of last year.

 

With South Korea’s population at 51.6 million, the data implies that roughly one in four Koreans now holds an account on the platform. Demographic breakdowns show that users in their 30s comprise the largest cohort at 28.7%, followed by those in their 40s at 24.1% and 20s at 23.2%. Users in their 50s accounted for 16.9%, while those in their 60s and 70s made up 6.0% and 1.1%, respectively.

 

Adoption is particularly high among younger generations, with the combined total of users in their 20s and 30s reaching 5.48 million. Based on Ministry of the Interior and Safety data showing 12.37 million people aged 20 to 39 as of November, approximately 44% of Koreans in this age demographic use the platform. Upbit added 1.1 million new users last year, with men comprising 56.9% of new accounts and women 43.1%.

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Photo by Kanchanara on Unsplash

XRP overtakes BTC and ETH in trading

In terms of trading volume, Ripple’s XRP was the most traded cryptocurrency in 2025, outpacing both Bitcoin and Ethereum. Daily activity peaked in the morning, coinciding with the start of the typical business day. The highest volumes were recorded at 00:00 UTC, or 9 a.m. Korea Standard Time.

 

Beyond standard trading, users are increasingly turning to Upbit’s asset management tools. Since its 2022 launch, the platform’s staking feature has attracted over 300,000 users, generating 257.3 billion won ($178.6 million) in total rewards. Furthermore, a dollar-cost averaging feature introduced in August 2024 has drawn about 220,000 users, with cumulative investments totaling 478.1 billion won ($331.9 million).

 

Kbank eyes public listing

In the broader ecosystem, Upbit’s banking partner is preparing for an initial public offering (IPO) this year. Kbank, an internet-only lender that has partnered with Upbit since 2020, is closely linked to the exchange through shared customers. According to Hansbiz, crypto-related funds accounted for roughly 16% of Kbank’s total deposits as of the first half of 2025. Under South Korean law, fiat-to-crypto service providers must secure real-name accounts from a local bank, meaning Upbit users are required to deposit Korean won at Kbank before trading on the exchange.

 

However, Kbank’s financial performance has softened following the 2024 implementation of the Virtual Asset User Protection Act, which compelled the bank to raise annual interest rates on deposits from Upbit users from 0.1% to 2.1%. On a consolidated basis, net interest income totaled 323.2 billion won ($224 million) in the third quarter of 2025, down 13% year over year. Net fee income remained in the red, posting a loss of 2.8 billion won ($1.94 million), widening from a 1.3 billion won loss in the same period a year earlier.

 

This latest IPO push follows two failed attempts and carries contractual implications. When Kbank raised 725 billion won ($503 million) in 2021 from investors including Bain Capital and MBK Partners, it pledged to list its shares by July 2026. If the upcoming attempt fails, those backers could exercise drag-along rights and put options, potentially resulting in increased financial obligations for Kbank.

 

Meanwhile, Upbit has seen other notable shifts in its business and governance. In November, Dunamu and Naver Financial, a subsidiary of internet giant Naver, approved a merger plan structured as a comprehensive share swap at a ratio of 1 to 2.54. At the time of the announcement, market observers estimated Dunamu’s valuation at 15 trillion won ($10.4 billion), compared with 5 trillion won ($3.5 billion) for Naver Financial.

 

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Web3 & Enterprise·

Feb 27, 2026

JPYC secures $11.4M funding as Japan expands stablecoin push 

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Policy & Regulation·

May 16, 2024

China busts underground bank conducting illegal currency exchanges via crypto

China's authorities have dismantled an underground bank that illicitly utilized cryptocurrency for currency exchange operations between the Chinese yuan and the South Korean won, involving approximately 2.14 billion yuan ($295.8 million). China has a history of imposing strict capital control policies, prompting some individuals and entities to resort to cryptocurrency as a means of bypassing these regulations. According to a report published by local police in Northeast China’s Jilin province, six suspects were apprehended for their alleged involvement in facilitating the illegal operations spanning China and South Korea.Photo by Hyory Liu on UnsplashExploiting cryptocurrency featuresThe suspects purportedly took advantage of cryptocurrency features like transaction anonymity and decentralization to execute foreign currency exchange activities unlawfully. Investigations revealed that the criminal group utilized domestic accounts for fund receipt and transfer, alongside over-the-counter cryptocurrency transactions. Supporting illicit transactionsThe arrested individuals allegedly aided various entities, including South Korean purchasing agents, cross-border e-commerce platforms and import-export trade firms, in circumventing currency exchange regulations between the Chinese yuan and the South Korean won. 

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Policy & Regulation·

Oct 24, 2023

Seoul and Baobab Partners Face Controversy Over Unpaid Prize Winnings for SWF2023 Hackathon

Seoul and Baobab Partners Face Controversy Over Unpaid Prize Winnings for SWF2023 HackathonThe city of Seoul has come under public scrutiny for failing to pay the winners of the Seoul Web3 Festival (SWF2023) Hackathon a cash prize worth KRW 150 million (approximately $112,000). The Seoul Metropolitan Government has argued that since it was simply a naming rights sponsor, the responsibility for paying the prizes lies with Baobab Partners, who co-hosted the event. However, critics argue that the city did not properly vet Baobab Partners more rigorously before hosting the event.Photo by okaybuild on PixabayUnpaid prizes lingerThe SWF2023 Hackathon took place from July 31 to August 2 at Dongdaemun Design Plaza (DDP) and was co-hosted by the city of Seoul, the Seoul Design Foundation, and Baobab Partners. It offered a total prize pool of KRW 150 million attracting 417 participants who made up 115 teams.However, although over two months have passed since then, the winners are yet to be paid their prize money. “Baobab Partners initially proposed the SWF2023 event, and they were responsible for gathering the necessary sponsorship funds to run the event,” said a city representative.According to industry sources on Monday, the company’s CEO, Choi Jin-beom, issued a handwritten apology last Friday regarding the incident. “We promised to pay the winners by today, but we were unable to deliver on that promise. We explored multiple avenues, including investors, new contractors, and other assets, but were ultimately unable to secure the funds to do so,” he said. “The narrative that the funds were diverted elsewhere or invested in cryptocurrencies or stocks is untrue,” he added, clarifying that related information was transparently disclosed to the city of Seoul.Baobab Partners’ swift rise raises industry eyebrowsBaobab Partners had previously participated as an event planner at last year’s Blockchain Week in Busan, which turned out to be a success. “We also spoke with the Busan city government, who gave a positive opinion of the company,” the representative added. It was under this context that Seoul entered into a naming rights agreement with Baobab Partners. The agreement stipulated that the company would be in charge of attracting and managing sponsorships, and the prize money and operational costs would be covered by corporate sponsorship funds.Nevertheless, questions have arisen within the industry about Baobab Partners’ short track record and its successive collaborations with public organizations. Baobab Partners is a startup that was founded in May 2021. In November of the same year, the firm signed memoranda of understanding with three blockchain companies during NFT Busan 2021, a large-scale NFT fair held in the southern port city to share the latest blockchain trends. As a result of its efforts, it was listed alongside prominent companies such as Coinone and Onther despite only six months passing since its establishment. Subsequently, Baobab Partners relocated from Seoul to Busan, and the following year, it participated as an event planner at Blockchain Week in Busan.Accumulating allegationsSpeculation suggests that this success was not solely due to Baobab Partners’s capabilities. The company’s CEO is believed to have political connections, according to an anonymous industry insider. Choi denied such claims and stressed that its technical expertise should not be downplayed, citing the fact that Baobab Partners was the first entity in Korea to develop virtual reality (VR) banking technology and had received a KRW 15 billion investment from Finger, a KOSDAQ-listed company.Baobab Partners has also been mired in controversy over supposedly unpaid wages. In response to a claim made by an industry source that many former employees of Baobab Partners have still not received their due wages, a Seoul representative stated that there is no such dispute according to conversations with company representatives, seeking to dispel the dispute. Choi further explained, “We didn’t have wage disputes until last year. The difficulty in paying wages began in January this year due to the failure to execute promised investment funds.”The city said that it is currently conducting legal examinations and looking into necessary measures for two matters involving Baobab Partners, including the handling of hackathon winnings.

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