Why can Binance’s expansion in South Korea benefit so much from Ripple’s XRP?
Binance, the world’s largest cryptocurrency exchange, is expected to launch an exchange crypto-to-crypto in South Korea through its cloud solution. According to a blog post on March 31, 2020, the new exchange will be known as Binance KR and will be open for trading from April 4, 2020.
Ripple’s cryptocurrency, XRP, may be one of the biggest beneficiaries of Binance’s entry into the South Korean market – here’s why.
Binance invests in the South Korean market with the launch of Binance KR
Binance Ltd. recently acquired the fintech firm BxB in a strategic partnership. Notably, BxB launched the first Korean won-backed stablecoin, KRWb. Following the acquisition, Binance will launch its own cryptocurrency exchange in South Korea, Binance KR.
Binance KR will be the first exchange to be launched through the Binance Cloud, which was launched in February this year. The new exchange will give South Korean customers access to all the features present on Binance’s main trading platform.
Binance’s CEO Changpeng Zhao took to Twitter to announce the wonderful news with a tweet in the Korean language followed by the South Korean flag. The tweet roughly translates to “Hello South Korea”.
Binance KR is an exchange crypto-to-crypto. As such, deposits in kind will not be allowed. Users will leverage BKRW, a stablecoin tied to the Korean won. For its initial phase, Binance KR will allow the trading of bitcoin (BTC), ethereum (ETH) and Binance Coin (BNB). The exchange plans to add Tether (USDT) and Binance USD (BUSD) soon.
The official announcement also notes that Binance will be adding more products for its South Korean customers. With Ripple’s vigorous efforts to gain a strong foothold in South Korea, the XRP listing would be a tremendous benefit.
XRP is likely to benefit most from Binance’s entry into South Korea
In the past few weeks, Ripple Labs, the San Fransisco blockchain company behind the XRP cryptocurrency, has stepped up its expansion efforts in South Korea. The fintech company recently established partnerships with three money transfer companies in South Korea, namely Hanpass, Sentbe and WireBarley. These three companies will use RippleNet for cheap, real-time international payments.
Most importantly, Ripple hired banking and financial payments specialist Kevin Lee to spearhead its expansion in South Korea. Lee previously worked with major payment companies, including Mastercard and Visa.
Now that Ripple is already strengthening its presence in South Korea, having the XRP listed on Binance KR seems inevitable. And that move will give the third most valuable cryptocurrency in the world the exposure it needs for its global expansion.