KBank, the digital-only bank and exclusive banking partner for the Upbit crypto exchange, has announced plans to test onchain cross-border remittances in collaboration with Ripple. The two companies have successfully completed the first phase of a proof-of-concept using a wallet-based remittance system and are now entering the second phase, which involves testing the stability of onchain transfers to countries such as the UAE and Thailand. By utilizing Ripple's Palisade wallet, KBank aims to improve the speed, cost, and transparency of international transactions, which currently rely on correspondent banking networks like SWIFT and can take several days to settle with compounded fees.
Onchain remittances, on the other hand, enable direct transfers across a blockchain network, settling in minutes with fees paid only to the network. This partnership seeks to explore the potential of onchain remittances in enhancing the customer experience for KBank's remittance services. Additionally, KBank is preparing for impending stablecoin regulations in Korea by conducting technical verification of remittance use cases for stablecoins as the regulatory framework evolves. The bank's user base has grown significantly, from 2 million in 2020 to 15 million by the end of 2025, largely due to its exclusive partnership with Upbit, the country's largest crypto exchange.
As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions in the country are forging infrastructure deals with global blockchain companies in anticipation of the law's implementation. With Korea being one of the most active retail crypto markets globally, banks are positioning themselves to capitalize on the expected increase in corporate and cross-border activity once the regulatory framework is formalized.