From BigGo Finance · BigGo Finance · · 1m 20s
Ripple and Jeonbuk Bank Launch Real-Customer Remittance Service
Ripple partners with Jeonbuk Bank for first real-customer remittance service in South Korea, using dollars not stablecoins.
In brief
Ripple partners with Jeonbuk Bank for first real-customer remittance service in South Korea, using dollars not stablecoins. Ripple and Jeonbuk Bank will launch a remittance service for Southeast Asia by year-end using pre-deposited dollars, not stablecoins, to avoid competing with banks. Originally reported by BigGo…
Ripple and Jeonbuk Bank Partnership
Ripple partners with South Korea's Jeonbuk Bank to launch first real-customer remittance service for Southeast Asia by year-end.
“Ripple is teaming up with South Korea's Jeonbuk Bank to launch a personal overseas remittance service for Southeast Asia by the end of this year.”
Actual Customer Funds Flow
Jeonbuk Bank pre-deposits dollars for remittances, avoiding stablecoins to reduce regulatory burden.
“Ripple said it will use dollars pre-deposited by Jeonbuk Bank rather than stablecoins for remittances, lowering the bank's regulatory burden while Ripple provides only the payment infrastructure.”
Ripple's Role Clarified
Ripple provides payment infrastructure, not won-denominated stablecoins, which are the domain of South Korean banks.
“Ripple will not compete with banks in the won-denominated stablecoin space. Issuing a won-denominated stablecoin is the domain of South Korean banks.”
Institutional Focus
Ripple targets institutional custody demand ahead of South Korea's security token framework implementation in February next year.
“Ripple plans to focus on institutional custody demand ahead of the implementation of South Korea's security token framework in February next year.”
Market Context
South Korea has over 11 million virtual asset users, with market capitalization of 87 trillion won ($65.7 billion).
“South Korea has more than 11 million virtual asset users, equivalent to about 24% of the population, and that the market capitalization of virtual assets held by individuals is about 87 trillion won (approximately $65.7 billion).”
Regulatory Challenges
Real-name accounts for corporations are not yet allowed, and virtual asset taxation begins in January next year.
“South Korea's regulatory framework is still being fleshed out. Real-name accounts for corporations are not yet allowed, and discussions on a basic digital asset law are being delayed. Virtual asset taxation begins in January next year.”
Next Steps
Other regional banks and fintech companies expected to introduce similar services after Jeonbuk Bank launches the service.
“Once actual remittance unit costs and processing speeds are confirmed after Jeonbuk Bank launches the service, other regional banks and fintech companies are expected to gain momentum in introducing similar services.”
Ripple's Vision
Ripple aims for round-the-clock, always-on payments, eliminating banking hours and enabling daily transactions.
“Banking hours will disappear and transactions will happen every day.”
The headline
Ripple and Jeonbuk Bank will launch a remittance service for Southeast Asia by year-end using pre-deposited dollars, not stablecoins, to avoid competing with banks.
