Klaytn, Finschia merge for web3 expansion in Asia

Layer-1 blockchains Klaytn and Finschia have received approval from their governance members to merge.

The merger aims to create a web3 ecosystem in Asia, involving over 45 companies, 420 decentralized applications (dApps) and services, and over 250 million wallet users.

Announced Thursday, the merger includes strategic expansion in Singapore, Vietnam, Taiwan, Thailand, and Abu Dhabi.

A new foundation will be established in Abu Dhabi to oversee the integration, with leadership comprising equal representation from Klaytn (KLAY) and Finschia. The merged blockchain mainnet will support Ethereum Virtual Machine and CosmWasm.

The integration process includes merging tokens and governance by the second quarter of this year, introducing a new native token.

Approximately 22.9% of the existing token issuance, valued at $384 million, will be burned, and all non-circulating tokens will be eliminated.

The partnership also plans to launch a stablecoin, develop decentralized finance solutions, and create a blockchain adoption infrastructure for web2 companies.