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Banks Tout Ripple Ties, Not XRP Use
5 Oct
Summary
- Korean banks partnered with Ripple but didn't name XRP as settlement asset.
- Ripple's software allows transactions in traditional currencies, not just XRP.
- Payment companies, not banks, are the confirmed XRP users.
Four Korean financial institutions, including Woori Bank and Kbank, recently participated in a Ripple event in Seoul. This presence led many XRP holders to believe these banks were adopting XRP for settlements. However, the disclosed agreements highlight partnerships with Ripple's broader payment solutions rather than explicit commitments to using XRP as a settlement asset.
These banks are leveraging Ripple's technology, which can facilitate transactions using traditional currencies like dollars or won, or Ripple's RLUSD stablecoin. The core distinction is between collaborating with Ripple's software and directly utilizing XRP as a bridge currency for cross-border payments. While Ripple's president noted an "institutional growth phase," this statement reflects potential future developments rather than current XRP usage by these banks.
Currently, confirmed users of XRP for payments are primarily payment companies, such as Japan's SBI Remit, which has used XRP for remittances since 2021. The Seoul event showcased existing collaborations and products, with no new agreements announced for XRP settlement. Therefore, despite the headlines, these partnerships do not currently indicate increased demand for the XRP token itself.
