KBank, the prominent digital-only bank in South Korea and exclusive banking partner for the crypto exchange Upbit, has announced plans to test on-chain cross-border remittances in collaboration with Ripple. The partnership has successfully completed the first phase of a proof-of-concept using a wallet-based remittance system and is now proceeding to the second phase, which involves testing the stability of on-chain transfers to countries such as the United Arab Emirates and Thailand. By utilizing Ripple's Palisade wallet, which was acquired as part of Ripple's $4 billion investment in crypto-related ventures, KBank aims to revolutionize international bank transfers.
Currently, most international transfers 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, resulting in faster settlement times and lower fees. The partnership between KBank and Ripple seeks to enhance the speed, cost, and transparency of remittance services for KBank's customers. Furthermore, KBank is preparing for the impending stablecoin regulations in Korea by conducting technical verifications for stablecoin remittance use cases.
The bank's user base has experienced significant growth, increasing 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 regulatory framework for cryptocurrencies, major financial institutions in the country are forming infrastructure partnerships with global blockchain companies. With Korea being one of the most active retail crypto markets worldwide, banks are positioning themselves to capitalize on the anticipated corporate and cross-border activity once the Digital Asset Basic Act is implemented.