KBank, the digital-only bank and exclusive banking partner for the Upbit crypto exchange, has announced a collaboration with Ripple to test onchain cross-border remittances. The partnership has completed its first phase, utilizing a wallet-based remittance system, and is now in the second phase of testing 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 investment in crypto-related ventures, KBank aims to enhance the speed, cost, and transparency of its remittance services. Traditional international bank transfers often take days to settle and incur significant fees due to the use of correspondent banking networks like SWIFT.
In contrast, onchain remittances enable direct fund transfers across blockchain networks, settling in minutes and reducing fees. This partnership seeks to explore the potential of onchain remittances in improving KBank's services.
Additionally, KBank is preparing for the implementation of stablecoin regulations in Korea, with plans to continue testing remittance use cases for stablecoins as the regulatory framework develops. The bank's user base has grown significantly, from 2 million in 2020 to 15 million by the end of 2025, due in part to its exclusive partnership with Upbit. As South Korea's lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions are forming infrastructure partnerships with global blockchain companies.
With Korea being one of the most active retail crypto markets, banks are positioning themselves to handle the anticipated corporate and cross-border activity once the Digital Asset Basic Act is formalized.