KBank, the prominent South Korean digital bank and exclusive partner of the Upbit crypto exchange, has initiated a collaboration with Ripple to test onchain cross-border transfers. The partnership has completed its first phase, utilizing a wallet-based remittance system, and is now progressing to the second phase, which involves assessing the stability of onchain transfers to various countries, including the UAE and Thailand. By adopting Ripple's Palisade wallet, acquired as part of a $4 billion investment in crypto-related ventures, KBank aims to revolutionize international bank transfers, which currently rely on correspondent banking networks like SWIFT and are often plagued by delays and high fees. Onchain remittances, in contrast, enable direct transfers across blockchain networks, resulting in faster settlement times and reduced costs.
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 conducting technical assessments of remittance use cases for stablecoins. The bank's user base has experienced significant growth, from 2 million in 2020 to 15 million by the end of 2025, largely due to its exclusive partnership with Upbit.
As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive regulatory framework for crypto assets, major financial institutions are forming alliances with global blockchain companies to capitalize on the emerging opportunities in the Korean market, which is renowned for its vibrant retail crypto activity.