KBank, South Korea's prominent digital bank and exclusive partner of crypto exchange Upbit, is collaborating with Ripple to pilot on-chain cross-border remittances. The partnership has completed its initial phase, utilizing a wallet-based remittance system, and is now in the second phase, testing the stability of on-chain transfers to countries such as the UAE and Thailand. By using Ripple's Palisade software-as-a-service wallet, KBank aims to improve the speed, cost, and transparency of international transactions, which typically take days to settle and incur multiple fees through correspondent banking networks like SWIFT.
On-chain remittances, on the other hand, enable direct fund transfers across a blockchain network, settling in minutes with lower fees. The partnership seeks to capitalize on the benefits of on-chain remittances for KBank's customers.
Additionally, KBank is preparing for impending stablecoin regulations in Korea by continuing to technically verify remittance use cases for stablecoins as the regulatory framework develops. With Korean regulations requiring crypto exchange users to link a verified bank account, KBank holds a monopoly position with Upbit, the country's largest crypto exchange, having grown its user base from 2 million in 2020 to 15 million by the end of 2025. As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions are signing infrastructure deals with global blockchain companies. Korea's active retail crypto market, with daily trading volumes often surpassing those of mainstream stocks, is driving banks to position themselves for the anticipated corporate and cross-border activity once the Digital Asset Basic Act is formalized.