In a significant development, KBank, South Korea's prominent digital-only bank and exclusive banking partner for the crypto exchange Upbit, is collaborating with Ripple to pilot onchain cross-border remittances. 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 onchain transfers to countries such as the United Arab Emirates and Thailand.
By utilizing Ripple's Palisade, a software-as-a-service wallet acquired as part of Ripple's $4 billion investment in crypto-related ventures, KBank aims to revolutionize international bank transfers, which currently rely on correspondent banking networks like SWIFT and can take days to settle with compounded fees. In contrast, onchain remittances enable direct fund transfers across a blockchain network, settling in minutes with fees paid only to the network.
This partnership seeks to enhance the speed, cost, and transparency of remittance services for KBank's customers. Furthermore, KBank is preparing for impending stablecoin regulations in Korea by continuing technical verification of remittance use cases for stablecoins as the regulatory framework evolves. The bank's user base has experienced significant growth, from approximately 2 million in 2020 to 15 million by the end of 2025, largely due to its monopoly position with Upbit, the country's largest crypto exchange. As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions in Korea are forging infrastructure deals with global blockchain companies.
With Korea being one of the most active retail crypto markets worldwide, banks are strategizing to capitalize on the anticipated corporate and cross-border activity once the Digital Asset Basic Act clarifies the treatment of stablecoins, custody, and tokenized assets under Korean law.