XRP Ledger to Soon Host Korean Won Stablecoin for Ripple Payments

The XRP Ledger (XRPL) could support a stablecoin tied to the Korean won as Ripple expands its payment services in South Korea.

This projection follows Ripple’s partnership with Jeonbuk Bank. On August 18, Ripple announced that Jeonbuk Bank became the first regional bank in South Korea to use Ripple Payments for international transfers.

The system allows the bank’s business customers to settle cross-border payments in seconds or minutes instead of several days. It also works 24/7.

XRPL Community Sees a Path for a KRW Stablecoin

Following the announcement, XRPL validator Vet, Hussein Zangana, argued that banks and financial institutions could bypass traditional payment systems like SWIFT as blockchain technology improves.

He pointed to Jeonbuk Bank’s Ripple Payments deployment and noted that a subsidiary of JB Financial is also testing a Korean won stablecoin. Vet suggested that a KRW-denominated stablecoin issued on the XRPL could provide a natural settlement asset for Ripple Payments.

He also said Ripple Payments could move onto the XRPL decentralized exchange, using tools like Permissioned DEX and Domains to meet compliance requirements.

This could allow a Korean won stablecoin to work with XRP and Ripple’s RLUSD, creating more options for cross-border payments.

How XRP Could Be Used for Payments

XRP influencer Krippenreiter suggested one possible way a future Korean won (KRW) stablecoin could work with the XRPL.

The idea would be to issue the KRW stablecoin on the XRPL, use a permissioned system for KYC, anti-money laundering and sanctions checks, and use a permissioned DEX to trade KRW for XRP, RLUSD and other assets.

Meanwhile, XRP will act as a bridge between different currencies and stablecoins, helping find efficient ways to convert between them. In this setup, Ripple Payments could use the DEX to access currency liquidity, while XRP could help move money between currencies.

However, this is only a proposed idea. Ripple and Jeonbuk Bank have not announced plans to issue a Korean won stablecoin on the XRPL.

Jeonbuk Bank Boosts Ripple Expansion in Korea

Meanwhile, the Jeonbuk Bank partnership is nevertheless significant for Ripple’s Korean strategy. It marks its third Korean financial partnership this year, after working with Kyobo Life Insurance and Kbank.

Kyobo Life Insurance is exploring blockchain-based government bond settlements, while Kbank is using Ripple Custody for institutional wallets. Together, these partnerships show Ripple is expanding its services in payments, custody, treasury and digital wallets in Korea.

XRPL developer Bird said these deals show Ripple’s plans for institutional adoption are becoming real financial infrastructure. He pointed to Jeonbuk Bank’s deployment, Ripple Payments’ expansion on-chain, permissioned DEX infrastructure, RLUSD, and tokenized assets as pieces of a broader ecosystem.