KBank, the digital-only bank and exclusive partner of the Upbit crypto exchange, has announced plans to test onchain cross-border remittances in collaboration with Ripple. The two companies have completed the initial phase of a proof-of-concept using a wallet-based remittance system and are now entering the second phase, focusing on testing the stability of onchain transfers to countries such as the United Arab Emirates and Thailand. KBank is utilizing Palisade, a software-as-a-service wallet acquired by Ripple as part of its $4 billion investment in crypto-related technologies. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take several days to settle and incur multiple fees.
In contrast, onchain remittances enable direct fund transfers across a blockchain network, settling in minutes with a single fee paid to the network. The partnership between KBank and Ripple aims to leverage this approach to improve the speed, cost, and transparency of remittances for its customers.
Additionally, KBank is preparing for upcoming stablecoin regulations in Korea by continuing to verify the technical feasibility of remittance use cases for stablecoins as the regulatory framework evolves. Under current Korean regulations, crypto exchange users are required 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 in the country are signing infrastructure deals with global blockchain companies. Korea boasts one of the most active retail crypto markets globally, 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 anticipated corporate and cross-border activity once the Digital Asset Basic Act formalizes the treatment of stablecoins, custody, and tokenized assets under Korean law.