KBank, the digital-only bank serving as the exclusive banking partner for the crypto exchange Upbit, 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 using a wallet-based remittance system and are now entering the second phase, which involves testing the stability of on-chain transfers to countries such as the United Arab Emirates and Thailand. By leveraging Palisade, Ripple's software-as-a-service wallet, KBank aims to improve the speed, cost, and transparency of international transactions for its customers.
Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take several days to settle and incur cumulative 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 explore the potential of this approach in enhancing the remittance experience. Additionally, KBank is preparing for upcoming regulations on stablecoins in Korea by continuing to technically verify remittance use cases for stablecoins as the legal framework evolves.
The bank's user base has grown significantly, from approximately 2 million in 2020 to 15 million by the end of 2025, partly due to its exclusive partnership 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 the country are signing infrastructure deals with global blockchain companies to position themselves for the impending changes. With Korea being one of the most active retail crypto markets globally, banks are preparing to handle the anticipated corporate and cross-border activity once the regulatory framework is formalized.