KBank, the digital-only bank and exclusive banking partner for the Upbit crypto exchange, has announced a collaboration with Ripple to test onchain cross-border remittances. The partnership has completed the first phase of a proof-of-concept and is now in the second phase, evaluating 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 bank transfers, which currently rely on correspondent banking networks like SWIFT and can take days to settle with compounding fees. In contrast, onchain remittances enable direct fund transfers across a blockchain network, settling in minutes with fees paid only to the network.
This partnership is part of KBank's efforts to prepare for stablecoin regulations in Korea and to explore technical verification of remittance use cases for stablecoins as the regulatory framework develops. With Korean lawmakers finalizing the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions are signing infrastructure deals with global blockchain companies to position themselves for the expected growth in corporate and cross-border activity.