KBank, South Korea's prominent digital-only bank and exclusive banking partner for the crypto exchange Upbit, has announced its collaboration with Ripple to test onchain cross-border remittances. The partnership has successfully completed the first phase of a proof-of-concept using a wallet-based remittance system and is now entering the second phase, which involves testing the stability of onchain transfers to countries such as the United Arab Emirates and Thailand.
By utilizing Ripple's Palisade, a software-as-a-service wallet acquired by Ripple as part of its $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 several days to settle and incur cumulative fees.
In contrast, onchain remittances enable direct fund transfers across a blockchain network, settling in mere minutes with fees paid solely to the network. This partnership seeks to determine whether KBank can utilize this approach to improve its remittance services. Additionally, KBank is preparing for impending stablecoin regulations in Korea by conducting technical verification of remittance use cases for stablecoins as the legal framework evolves.
The bank's user base has grown significantly, from approximately 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.