KBank, the prominent digital-only bank and exclusive banking partner for the Upbit cryptocurrency exchange, has announced plans to test on-chain cross-border remittances in collaboration with Ripple. The first phase of the proof-of-concept has been completed, with the second phase now underway to assess the stability of on-chain transfers to countries such as the United Arab Emirates and Thailand.
KBank is leveraging Palisade, Ripple's software-as-a-service wallet, which was acquired as part of Ripple's substantial investment in the crypto space. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can be slow and incur significant fees.
In contrast, on-chain remittances enable direct fund transfers across a blockchain network, resulting in faster settlement times and lower costs. The partnership between KBank and Ripple aims to enhance the speed, cost, and transparency of remittance services for KBank's customers.
Additionally, KBank is preparing for impending stablecoin regulations in Korea by conducting technical verification of remittance use cases for stablecoins. The bank's user base has experienced significant growth, from approximately 2 million in 2020 to 15 million by the end of 2025, largely due to its exclusive partnership with Upbit. As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive regulatory framework for cryptocurrencies, major financial institutions are forming infrastructure deals with global blockchain companies. With Korea being one of the most active retail crypto markets globally, banks are positioning themselves to capitalize on the anticipated corporate and cross-border activity that will follow the formalization of stablecoin, custody, and tokenized asset regulations.