KBank, South Korea's digital-only bank and exclusive partner of crypto exchange Upbit, is collaborating with Ripple to test onchain cross-border transfers. The first phase of their proof-of-concept has been completed, with the second phase currently underway to assess the stability of onchain transactions to countries such as the UAE and Thailand. By utilizing 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 international money transfers. Traditional banking networks like SWIFT often take days to settle transactions and charge multiple fees.
In contrast, onchain remittances facilitate direct transfers across blockchain networks, settling in minutes with lower fees. This partnership seeks to leverage this approach to improve services for KBank's remittance customers. Furthermore, KBank is preparing for impending regulations on stablecoins in Korea, with plans to continue testing remittance use cases as the legal framework evolves. The bank has seen significant growth, from 2 million users 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 position themselves for the upcoming changes. With Korea being one of the most active retail crypto markets globally, banks are gearing up to handle the anticipated increase in corporate and cross-border activities once the regulatory framework is formalized.