KBank, the digital-only bank serving as the exclusive banking partner for the Upbit crypto exchange, has announced plans to test on-chain cross-border remittances in collaboration with Ripple. The two companies have completed the initial phase of a proof-of-concept using a wallet-based remittance system and are currently testing the stability of on-chain transfers to countries such as 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 technologies. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take several days to settle and incur significant fees. In contrast, on-chain remittances enable direct fund transfers across a blockchain network, settling in minutes with lower fees.
The partnership between KBank and Ripple aims to improve the speed, cost, and transparency of remittance services for KBank's customers. Additionally, KBank is preparing for upcoming stablecoin regulations in Korea by continuing to verify the technical feasibility of stablecoin-based remittance use cases. Under current Korean regulations, crypto exchange users are required to link a verified bank account before trading, with each major exchange partnered exclusively with one bank.
KBank holds a monopoly position with Upbit, the largest crypto exchange in the country, which has contributed to its significant user base growth from 2 million in 2020 to 15 million by the end of 2025. As Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions in the country are signing infrastructure deals with global blockchain companies. With Korea being one of the most active retail crypto markets globally, banks operating in this market are positioning themselves to handle the anticipated increase in corporate and cross-border activity once the Digital Asset Basic Act formalizes the treatment of stablecoins, custody, and tokenized assets under Korean law.