XRP Price Drops Below $1 as Ripple Expands Korean Bank Ties

XRP is trading at approximately $0.99, marking its first dip below the $1 threshold since November 2024 as the asset struggles to maintain momentum despite a string of institutional partnerships [2]. The price decline coincides with Ripple’s announcement that Jeonbuk Bank has become the third Korean financial institution to adopt its payment rails this year, though the deal remains unconfirmed regarding whether it utilizes XRP for settlement [2].

Institutional adoption vs. market performance

The partnership with Jeonbuk Bank, a regional lender under JB Financial Group, aims to replace traditional multi-day SWIFT transfers with near real-time settlement for import-export firms and startups [2]. While Ripple executives frame the deal as evidence of growing institutional momentum, the company has not disclosed whether these flows use XRP or stablecoin-based settlement [2]. This ambiguity mirrors previous pilots, such as the one with KBank, which utilized stablecoins rather than the XRP token [2].

The market reaction has been muted, with the token testing the $1 level for nine consecutive sessions as of August 19 [2]. XRP is currently down approximately 73% from its July 2025 peak of $3.65 [2]. While analysts from firms like Bitwise and Standard Chartered maintain long-term price models ranging from $6.53 to $12.50, these projections rely on the assumption of significant settlement volume flowing directly through the token—a demand signal that has yet to materialize in the Korean market [2].

Regulatory shifts in South Korea

The broader digital asset environment in South Korea is tightening as lawmakers move to increase oversight. A new bill introduced by lawmaker Eom Tae-young proposes expanding the Financial Intelligence Unit’s authority, allowing for a "crowdsourced" enforcement model where any individual can report suspected violations [1, 3]. Additionally, regulators have labeled the prediction market Polymarket as illegal gambling, signaling a more restrictive stance toward non-traditional platforms [1, 3]. Amid these changes, BitGo Korea successfully secured registration approval just before the implementation of stricter Virtual Asset Service Provider (VASP) requirements [1, 3].

What to watch

• Support levels: Monitor the $0.97 to $0.98 range, which represents the most recent 52-week low and the final defense before the $0.90 zone [2].
• Settlement transparency: Watch for future disclosures from Ripple regarding whether Korean institutional partners transition from stablecoin-based settlement to using XRP as a bridge asset [2].
• Regulatory implementation: Track the progress of the Digital Asset Basic Act in Seoul, which is expected to formally classify stablecoins as payment instruments [2].

The persistent gap between Ripple’s successful bank integrations and the token’s price action leaves a central question for the market: whether institutional adoption of the company's payment rails will eventually necessitate the use of the XRP token, or if the network will continue to scale independently of the asset.