KBank, the exclusive banking partner for the prominent crypto exchange Upbit, has announced a collaboration with Ripple to pilot onchain cross-border remittances. Following the successful completion of the first phase of a proof-of-concept using a wallet-based remittance system, the two companies are now entering 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 wallet, KBank aims to enhance the speed, cost, and transparency of its remittance services. Unlike traditional international bank transfers that rely on correspondent banking networks like SWIFT and can take days to settle, onchain remittances enable the direct transfer of funds across a blockchain network, settling in minutes with lower fees.
This partnership seeks to capitalize on the potential of onchain remittances to improve the efficiency of KBank's services. Additionally, KBank is preparing for the impending stablecoin regulations in Korea, with plans to continue exploring technical 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 exclusive partnership with Upbit. As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive regulatory framework for cryptocurrencies, major financial institutions in the country are forging infrastructure deals with global blockchain companies to position themselves for the expected surge in corporate and cross-border activity.