KBank, the digital-only bank and exclusive partner of crypto exchange Upbit, is collaborating with Ripple to test onchain cross-border transfers. The first phase of the proof-of-concept has been completed, with the second phase currently underway to assess the stability of onchain transfers to countries like the UAE and Thailand.
By leveraging Palisade, Ripple's software-as-a-service wallet, KBank aims to improve the speed, cost, and transparency of international money transfers. Traditional banking networks, such as SWIFT, often take days to settle and charge multiple fees.
In contrast, onchain remittances enable direct transfers across blockchain networks, settling in minutes with lower fees. The partnership seeks to capitalize on this approach for KBank's remittance customers. Additionally, KBank is preparing for impending stablecoin regulations in Korea, with plans to continue testing remittance use cases for stablecoins as the regulatory framework evolves.
The bank's user base has grown significantly, from 2 million in 2020 to 15 million by 2025, largely due to its exclusive partnership with Upbit. As South Korea finalizes its comprehensive crypto regulatory framework, the Digital Asset Basic Act, major financial institutions are forming partnerships with global blockchain companies to position themselves for the expected growth in corporate and cross-border activity.