KBank, the digital-only bank and exclusive partner of crypto exchange Upbit, has collaborated with Ripple to pilot onchain cross-border remittances. The partnership has completed its first phase, utilizing a wallet-based remittance system, and is now testing the stability of onchain transfers to countries such as the UAE and Thailand.
By using Ripple's Palisade software-as-a-service wallet, KBank aims to enhance the speed, cost, and transparency of international transactions for its customers. Unlike traditional banking networks like SWIFT, which can take days to settle and incur multiple fees, onchain remittances enable direct transfers across a blockchain network, settling in minutes with reduced fees. The partnership also prepares KBank for impending stablecoin regulations in Korea, with plans to continue technical verification of remittance use cases for stablecoins as the regulatory framework develops. With Korean lawmakers finalizing the Digital Asset Basic Act, major financial institutions are forging infrastructure deals with global blockchain companies to position themselves for the anticipated growth in corporate and cross-border activity.