KBank, the prominent South Korean digital bank and exclusive partner of crypto exchange Upbit, has announced its collaboration with Ripple to test onchain cross-border remittances. The partnership has completed its initial phase, which involved a proof-of-concept using a wallet-based remittance system, and is now entering its second phase to assess the stability of onchain transfers to countries such as the UAE and Thailand.
By leveraging Ripple's Palisade wallet, acquired as part of its $4 billion investment in crypto-related ventures, KBank aims to enhance the speed, cost, and transparency of international transactions for its customers. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, resulting in prolonged settlement times and cumulative fees. In contrast, onchain remittances enable direct fund transfers across a blockchain network, settling in minutes and incurring fees paid solely to the network.
This partnership seeks to explore the potential of onchain remittances in improving the efficiency of KBank's services. Additionally, KBank is preparing for the impending stablecoin regulations in Korea, with plans to continue technical verification of remittance use cases for stablecoins as the regulatory framework evolves. The bank's user base has experienced significant growth, from 2 million in 2020 to 15 million by the end of 2025, largely attributed 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 in the country are forging infrastructure deals with global blockchain companies. With Korea being one of the most active retail crypto markets worldwide, banks are positioning themselves to handle the anticipated surge in corporate and cross-border activity once the regulatory framework is formalized.