KBank, the prominent digital-only bank and exclusive banking partner for the crypto exchange Upbit, has announced its collaboration with Ripple to test onchain 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, assessing the stability of onchain transfers to countries including the UAE and Thailand. KBank is utilizing Palisade, Ripple's software-as-a-service wallet acquired 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, onchain remittances enable direct fund transfers across a blockchain network, settling transactions in minutes with lower fees. The partnership aims to enhance the speed, cost, and transparency of remittance services for KBank's customers.
Additionally, KBank is preparing for impending stablecoin regulations in Korea, with plans to continue technical verification of remittance use cases for stablecoins as the regulatory framework evolves. Korean regulations require crypto exchange users to link a verified bank account before trading, with each major exchange paired exclusively with one bank. KBank's monopoly position with Upbit has contributed to its user base growth 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. 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 formalized.