KBank, the digital-only bank and exclusive partner of the Upbit cryptocurrency 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 project utilizing a wallet-based remittance system and are now in the second phase, testing the stability of on-chain transfers to countries such as the United Arab Emirates and Thailand. By using Ripple's Palisade wallet, KBank aims to improve the speed, cost, and transparency of international transactions. Most international bank transfers currently 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 transfers across a blockchain network, settling in minutes with lower fees. The partnership between KBank and Ripple seeks to harness this approach to enhance the remittance experience for KBank's customers.
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 Korean government requires all cryptocurrency exchange users to link a verified bank account before trading, with each major exchange paired exclusively with one bank. As the exclusive banking partner of Upbit, Korea's largest cryptocurrency exchange, KBank has experienced significant growth, with its user base expanding from approximately 2 million in 2020 to 15 million by the end of 2025. South Korean lawmakers are currently finalizing the Digital Asset Basic Act, a comprehensive regulatory framework for cryptocurrencies.
In anticipation of the law's implementation, major Korean financial institutions have been forming partnerships with global blockchain companies to establish infrastructure. Korea is one of the most active retail cryptocurrency markets globally, with daily trading volumes on local exchanges often surpassing those of mainstream stocks during peak periods. As the Digital Asset Basic Act takes shape, banks operating in this market are positioning themselves to handle the expected increase in corporate and cross-border activity.