KBank, the digital-only bank and exclusive banking partner for the crypto exchange Upbit, has announced plans to pilot onchain cross-border remittances in collaboration with Ripple. The first phase of the proof-of-concept, utilizing a wallet-based remittance system, has been completed, and the second phase is now underway, focusing on testing the stability of onchain transfers to countries such as the UAE and Thailand.
By using Ripple's Palisade wallet, acquired as part of Ripple's $4 billion investment in crypto-related ventures, KBank aims to enhance the speed, cost, and transparency of its remittance services. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take days to settle and incur significant fees.
In contrast, onchain remittances enable direct fund transfers across blockchain networks, settling in minutes with lower fees. The partnership between KBank and Ripple seeks to explore the potential of this approach for improving remittance services.
Additionally, KBank is preparing for the impending stablecoin regulations in Korea by continuing to test remittance use cases for stablecoins. 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 Korea's lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions are forming partnerships with global blockchain companies to capitalize on the emerging opportunities in the market.