KBank, the digital-only bank and exclusive partner of the Upbit crypto exchange, has announced plans to test on-chain cross-border remittances in collaboration with Ripple. The first phase of the proof-of-concept, utilizing a wallet-based remittance system, has been completed, and the companies are now in the second phase, testing the stability of on-chain transfers to countries such as the UAE and Thailand. KBank is utilizing Palisade, Ripple's software-as-a-service wallet, which was acquired as part of Ripple's $4 billion investment in crypto-related ventures. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take several days to settle and incur cumulative fees.
In contrast, on-chain remittances enable direct fund transfers across a blockchain network, settling in minutes with fees paid only to the network. The partnership between KBank and Ripple aims to improve the speed, cost, and transparency of remittances for KBank's customers.
Additionally, KBank is preparing for upcoming stablecoin regulations in Korea, with plans to continue technical verification of remittance use cases for stablecoins as the regulatory framework develops. The Korean government requires all crypto exchange users to link a verified bank account before trading, with each major exchange paired exclusively with one bank. KBank holds a monopoly position with Upbit, the country's largest crypto exchange, which has contributed to the growth of its user base from 2 million in 2020 to 15 million by the end of 2025. As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions are signing infrastructure deals with global blockchain companies.
Korea is one of the most active retail crypto markets, with daily trading volumes on local exchanges often surpassing those of mainstream stocks during peak periods. Banks operating in this market are positioning themselves to handle the expected corporate and cross-border activity once the Digital Asset Basic Act formalizes the treatment of stablecoins, custody, and tokenized assets under Korean law.