KBank, the prominent digital-only bank and exclusive banking partner for the Upbit crypto exchange, has announced its collaboration with Ripple to test onchain cross-border remittances. The partnership has completed its first phase, utilizing a wallet-based remittance system, and is now proceeding to the second phase, which involves testing the stability of onchain transfers to various countries, including the UAE and Thailand. By using Ripple's software-as-a-service wallet, Palisade, 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 be time-consuming and incur significant fees. In contrast, onchain remittances enable direct fund transfers across a blockchain network, settling transactions in minutes and reducing fees. This partnership seeks to explore the potential of onchain remittances in improving KBank's services. Additionally, KBank is preparing for upcoming stablecoin regulations in Korea by continuing to verify remittance use cases for stablecoins.
The bank's user base has experienced significant growth, 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 infrastructure deals with global blockchain companies to position themselves for the expected surge in corporate and cross-border activity.