Ripple Brings RLUSD Stablecoin to South Korea’s Coinone Exchange

Ripple just launched RLUSD on Coinone. The move gives South Korean traders direct access to the company’s dollar-pegged stablecoin through one of the country’s biggest crypto exchanges, marking a pretty significant step in Ripple’s Asian expansion plans.

Coinone ranks among South Korea’s top three exchanges by trading volume, processing billions in transactions monthly. The partnership with Ripple comes as South Korean crypto activity surges past previous records, with April 2024 data showing the country handles roughly 15% of global stablecoin trades. Ripple’s entry into the market puts RLUSD directly against established players like Tether and USD Coin, which currently dominate Korean stablecoin trading. The timing seems strategic – South Korea’s won has faced volatility against the dollar, making stablecoins increasingly attractive for local traders seeking stability.

Regulatory Hurdles Remain

But there’s a catch. RLUSD still needs full regulatory approval from South Korean authorities before going live on Coinone’s platform.

South Korea maintains some of the world’s strictest crypto regulations, requiring extensive compliance checks for new digital assets. The Financial Services Commission hasn’t commented on Ripple’s application yet, and the approval process typically takes several months. Ripple said it’s “working closely with local regulators to ensure full compliance,” but didn’t provide specific timelines for when trading might actually begin.

Coinone CEO Cha Myung-hoon seemed optimistic about the partnership despite regulatory uncertainty. “We’re excited to work with Ripple to bring RLUSD to our platform, giving users more reliable choices in the volatile crypto space,” Cha said in a recent statement. The exchange already lists multiple stablecoins including USDT and USDC, processing around $2.8 billion in stablecoin volume monthly as of March 2024.

Market Competition Heats Up

The move puts Ripple in direct competition with Tether, which controls roughly 65% of South Korea’s stablecoin market. USD Coin holds another 25%, leaving smaller players fighting for the remaining share. RLUSD’s success will largely depend on whether it can offer better liquidity or lower fees than existing options.

Lee Sang-ho, a crypto analyst at Korea Blockchain Institute, thinks there’s room for another major stablecoin in the market. “Investors here are always looking for stable assets, especially in such a volatile market,” Lee said on April 3. “More options generally benefit traders through better pricing and competition.” This echoes themes explored in Stellar Crushes Ripple in Asset Race, underscoring the shifting landscape.

South Korean crypto trading volumes hit record highs in early 2024, with daily spot trading often exceeding $15 billion across major exchanges. Stablecoins account for roughly 40% of that volume, making South Korea one of the world’s most active stablecoin markets. The country’s tech-savvy population and strong digital payment infrastructure create ideal conditions for stablecoin adoption.

Ripple’s Korean expansion builds on previous work in the region. The company partnered with several local banks in 2023 to test cross-border payments using XRP, laying groundwork for deeper market penetration. Those pilot programs processed over $500 million in transactions, proving demand for Ripple’s technology among Korean financial institutions.

Coinone’s decision aligns with its strategy to diversify crypto offerings beyond Bitcoin and Ethereum. The exchange added five new stablecoins in 2023, including lesser-known options like BUSD and DAI. “We want to be the go-to platform for all types of digital assets,” a Coinone spokesperson said last month, though they declined to discuss specific details about the RLUSD integration timeline.

Other major Korean exchanges are watching closely. Bithumb and Upbit, the country’s two largest platforms, haven’t announced plans to list RLUSD yet. But industry sources suggest both exchanges are evaluating Ripple’s stablecoin for potential future listings, though no formal discussions have been confirmed.

The regulatory approval process remains the biggest unknown. South Korea’s Financial Services Commission typically requires 3-6 months to review new cryptocurrency listings, depending on complexity. RLUSD’s regulatory status in other markets could speed up the process, but Korean authorities often conduct independent reviews regardless of approvals elsewhere. This development aligns with Ripple Adds Digital Asset Tools to, highlighting broader market trends.

Trading fees will likely determine RLUSD’s market success once it launches. Coinone currently charges 0.05% for stablecoin trades, competitive with other major exchanges. Ripple hasn’t disclosed whether RLUSD will qualify for any promotional fee structures during its initial launch period.

Hub: XRP price, news, and analysis

The regulatory landscape for stablecoins in South Korea has grown increasingly complex since the Terra Luna collapse in May 2022, which wiped out $60 billion and prompted stricter oversight. Korean authorities now require stablecoin issuers to maintain 100% reserves in approved custodial accounts, with monthly audits and real-time reporting requirements. Major global players like Circle and Tether have already navigated these requirements successfully, giving them first-mover advantages that RLUSD will need to overcome.

Ripple’s broader Asian strategy extends beyond South Korea, with active partnerships in Japan, Singapore, and the Philippines driving regional growth. The company processed $15 billion in cross-border payments across Asia-Pacific in 2023, representing 35% of its global transaction volume. Korean financial institutions including Shinhan Bank and Woori Bank have tested Ripple’s payment rails for remittances to Southeast Asia, creating potential synergies with RLUSD adoption among institutional clients who already use XRP for liquidity management.