KBank, the digital-only bank and exclusive banking partner for the Upbit crypto exchange, has announced a partnership with Ripple to test onchain cross-border remittances. The two companies have completed the initial phase of a proof-of-concept for a wallet-based remittance system and are now entering the second phase, which involves testing the stability of onchain transfers to countries such as the UAE and Thailand. By utilizing Ripple's Palisade wallet, acquired as part of its $4 billion investment in crypto-related ventures, KBank aims to enhance the speed, cost, and transparency of its remittance services.
Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take several days to settle and incur significant fees. In contrast, onchain remittances enable direct transfers across a blockchain network, settling in minutes with lower fees. The partnership between KBank and Ripple seeks to capitalize on this approach to improve the remittance experience for its customers. Additionally, KBank is preparing for the impending stablecoin regulations in Korea by conducting technical verifications for remittance use cases involving stablecoins.
The bank's user base has grown substantially, from 2 million in 2020 to 15 million by the end of 2025, largely 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 regulatory framework for crypto assets, major financial institutions in the country are forging 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 gearing up to handle the anticipated increase in corporate and cross-border activity once the regulatory framework is formalized.