KBank, the digital bank behind Upbit's exclusive banking operations, is collaborating with Ripple to pilot onchain cross-border remittances. The partnership has completed its first phase, utilizing a wallet-based system, and is now entering its second phase to test the stability of onchain transfers to countries such as the UAE and Thailand.
By using Ripple's Palisade wallet, acquired as part of Ripple's $4 billion crypto investments, KBank aims to enhance the speed, cost, and transparency of international transactions. Traditional banking networks like SWIFT can take days to settle and incur multiple fees, whereas onchain remittances settle in minutes with fees paid directly to the network.
This partnership seeks to capitalize on the potential of onchain transactions to improve remittance services. Additionally, KBank is preparing for impending stablecoin regulations in Korea by continuing to technically verify remittance use cases for stablecoins as the regulatory framework evolves. With Korean lawmakers finalizing the Digital Asset Basic Act, major financial institutions are forging partnerships with global blockchain companies to position themselves for the future of crypto regulation in the country.