Arbitrum Foundation Collaborates with Lotte Group to Expand Metaverse Ambitions

South Korean conglomerate Lotte Group has secured funding from Layer-2 Ethereum network Arbitrum to expand its metaverse ambitions.

In its largest-ever developer grant, the Arbitrum Foundation has chosen Lotte to drive blockchain development for Caliverse, the metaverse gaming platform owned by the South Korean conglomerate.

The Lotte Caliverse will be an AI-driven 3D entertainment experience on the blockchain. This announcement was made during CES 2025 in Las Vegas, Nevada, where Offchain Labs, the developers behind Arbitrum, confirmed the grant without disclosing its exact value.

However, sources close to the matter revealed that the grant was issued in Arbitrum’s native token, ARB. This is standard practice for the Arbitrum Foundation, which seeks to foster growth across its ecosystem.

“Lotte is Arbitrum Foundation’s largest grant recipient to date. We’re proud to collaborate with partners closely aligned with our vision,” said John Park, Head of Korea at the Arbitrum Foundation.

Lotte’s initial foray into the metaverse began in 2022, and the first announcement of its partnership with Arbitrum came last year. The decision to integrate Arbitrum’s blockchain into Caliverse marks a significant step in bridging traditional businesses with emerging blockchain technologies.

Caliverse serves as a playground for novel tech trends, including artificial intelligence, virtual reality, and cryptocurrency. Users of the platform can explore immersive virtual worlds, participate in futuristic shopping experiences, and interact with branded content from global giants such as 7-Eleven and Tomorrowland.

With Arbitrum’s integration, Caliverse users will soon be able to make crypto payments for services. On the other hand, in-game transactions will leverage on-chain systems. Therefore, the partnership could rekindle corporate interest in metaverse ventures. While this concept peaked in popularity several years ago, it struggled to maintain momentum.

“Arbitrum’s blockchain is the ideal home ground for Lotte Caliverse, delivering industry-leading 250ms block times that ensure high-quality performance within virtual worlds and gaming experiences. With Arbitrum now powering Lotte Caliverse, in-game transactions will be seamlessly integrated on-chain, eliminating latency and providing users with a smooth, consumer-friendly experience,” said Steven Goldfeder, CEO of Offchain Labs.

While Lotte’s grant marks a milestone, the Arbitrum Foundation has a history of supporting innovative projects. On January 11, 2024, the Foundation awarded a grant to AOFverse, another metaverse-focused platform.

AOFverse’s initiative aimed to enhance on-chain metaverse experiences. Taken together, these developments signal Arbitrum’s broader strategy to dominate blockchain-based virtual environments.

Arbitrum has been a popular choice as a Layer-2 Ethereum blockchain because of its flexibility. Its prominence in the gaming sector has grown significantly, with the network experiencing a 72% year-over-year growth in 2024.

According to Offchain Labs, Arbitrum currently hosts 119 game titles and 23 gaming-focused blockchains through its Arbitrum Orbit stack. This toolkit enables developers to build customized blockchains using Arbitrum’s technology.

The collaboration between blockchain and Lotte merges blockchain’s efficiency with Lotte’s entertainment and retail expertise, paving the way for a new era of virtual interactivity. For Arbitrum, this partnership reinforces its position as the preferred blockchain infrastructure for gaming and metaverse platforms, with the deal set to introduce brands to a metaverse-like experience.

Despite the announcement, ARB’s price has dropped nearly 10% since the Wednesday session began. According to BeInCrypto data, it is currently trading at $0.827.