South Korean internet giant Naver’s financial unit acquires cryptocurrency exchange Upbit operator Dunamu in a $10.27 billion all-stock deal to secure future growth based on digital assets. The merger aims to tap into South Korea’s booming cryptocurrency market and drive growth in Naver’s fintech business beyond existing operations.

Naver’s fintech subsidiary plans to issue 2.54 shares for every one share in Upbit operator, boosting Naver’s presence in the digital assets and stablecoins market. Upbit, with 70% market share in South Korea, presents synergy opportunities for Naver to redirect user traffic towards financial products for younger generations.

Naver CEO Choi Soo-yeon dismisses speculation of a Nasdaq listing, focusing on enhancing shareholder value. Naver shares initially rose by 7% post-acquisition news but dropped 4.2% following an abnormal $47 million cryptocurrency withdrawal from Upbit, which the exchange pledged to cover using its assets.

The deal comes as part of Naver’s strategy to diversify revenue streams and capitalize on the growing digital assets market in South Korea.

Read more at Yahoo Finance: Naver’s payment arm to acquire South Korean crypto exchange operator in $10 billion deal