KBank, the digital-only bank and exclusive partner of crypto exchange Upbit, is collaborating with Ripple to test onchain cross-border remittances. The first phase of a proof-of-concept using a wallet-based remittance system has been completed, with the second phase now underway to assess the stability of onchain transfers to countries such as the UAE and Thailand. By using Ripple's Palisade wallet, KBank aims to improve the speed, cost, and transparency of international money transfers, which currently rely on correspondent banking networks like SWIFT. Onchain remittances, on the other hand, enable direct transfers across a blockchain network, settling in minutes and reducing fees.
This partnership is part of KBank's efforts to prepare for impending stablecoin regulations in Korea, with plans to continue testing remittance use cases for stablecoins as the regulatory framework develops. With Korean lawmakers finalizing the Digital Asset Basic Act, major financial institutions are signing infrastructure deals with global blockchain companies to position themselves for the expected growth in corporate and cross-border activity.