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We present a compactly integrated, 625 MHz clocked coherent one-way quantum key distribution system which continuously distributes secret keys over an optical fibre link. To support high secret key rates, we implemented a fast hardware key distillation engine which allows for key distillation rates up to 4 Mbps in real time. The system employs wavelength multiplexing in order to run over only a single optical fibre. Using fast gated InGaAs single photon detectors, we reliably distribute secret keys with a rate above 21 kbps over 25 km of optical fibre. We optimized the system considering a security analysis that respects finite-key-size effects, authentication costs and system errors for a security parameter of ε QKD= 4× 10− 9.