Korean Banks Partner with Ripple but XRP Use Remains Unclear

Four major South Korean banks, Woori Bank, Kbank, Kyobo Securities, and either Jeonbuk Bank or Kakao Bank, participated in an event with Ripple in Seoul, sparking excitement among XRP holders. The event also introduced XRP Asia, a regional initiative to promote the XRP Ledger. However, the announcements did not clarify whether these banks are using XRP for transactions or merely leveraging Ripple’s technology.

The distinction between partnering with Ripple and using XRP is crucial. Ripple’s software can facilitate cross-border payments without involving XRP, relying instead on traditional currencies or Ripple’s stablecoin, RLUSD. XRP is used as a bridge asset for converting currencies, but none of the banks explicitly mentioned XRP as the settlement asset during the event.

Kbank, for example, launched a remittance pilot with Ripple targeting the UAE and Thailand, while Jeonbuk Bank uses Ripple Payments for near-instant settlements. Kyobo Life collaborates with Ripple for tokenized government bonds, and Woori Bank works with BDACS, a custodian managing XRP for institutional clients. However, these partnerships do not confirm XRP usage for transactions.

Ripple President Monica Long described the event as the start of a “next big institutional growth phase” for the XRP Ledger, but this remains a forecast rather than proof of current XRP adoption. For now, the demand for XRP may stay stagnant unless banks commit to using it as a settlement asset with specified transaction volumes. As of October 4, XRP is trading at $1.50.