KBank, the digital-only bank and exclusive banking partner for the Upbit cryptocurrency exchange, has announced plans to test on-chain cross-border remittances in partnership 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, which involves testing the stability of on-chain transfers to countries such as the UAE 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 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 and incurring fees paid only to the network. The partnership between KBank and Ripple aims to improve the speed, cost, and transparency of remittance services for KBank's customers.
Additionally, KBank is preparing for impending stablecoin regulations in Korea and plans to continue technical verification of remittance use cases for stablecoins as the regulatory framework develops. 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. As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions in the country are forming 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.