In a move to enhance its global transfer capabilities, KBank, a prominent digital-only bank and exclusive banking partner for the crypto exchange Upbit, is collaborating with Ripple to test on-chain cross-border remittances. Following the successful completion of the first phase of a proof-of-concept using a wallet-based remittance system, the two companies are now in the second phase, focusing on the stability of on-chain transfers to various countries, including the UAE and Thailand. KBank is utilizing Palisade, a software-as-a-service wallet acquired by Ripple as part of its $4 billion investment in crypto-related ventures. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can be time-consuming and incur significant fees.
In contrast, on-chain remittances enable direct fund transfers across a blockchain network, settling transactions in minutes and reducing costs. This partnership aims to assess the potential of on-chain remittances to improve speed, cost, and transparency for KBank's remittance customers.
Additionally, KBank is preparing for impending stablecoin regulations in Korea by continuing technical verification of remittance use cases for stablecoins as the regulatory framework evolves. The bank's user base has grown substantially, from approximately 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 forging infrastructure deals with global blockchain companies. With Korea being one of the most active retail crypto markets globally, banks are positioning themselves to handle the anticipated corporate and cross-border activity once the Digital Asset Basic Act is implemented.