KBank, the prominent digital-only bank and exclusive banking partner for the crypto exchange Upbit, is collaborating with Ripple to pilot onchain cross-border remittances. Following the successful completion of the first phase of their proof-of-concept using a wallet-based remittance system, the two companies are now in the second phase, testing the stability of onchain transfers to countries such as the United Arab Emirates and Thailand. By leveraging Ripple's Palisade wallet, KBank aims to enhance the speed, cost, and transparency of international transactions for its customers. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can be time-consuming and incur significant fees.
In contrast, onchain remittances enable direct transfers across a blockchain network, settling in minutes and reducing costs. This partnership seeks to explore the potential of onchain remittances in improving the efficiency of cross-border transactions.
Additionally, KBank is preparing for the impending stablecoin regulations in Korea, with plans to continue testing remittance use cases for stablecoins as the regulatory framework evolves. The bank's user base has grown substantially, from approximately 2 million in 2020 to 15 million by the end of 2025, largely due to its exclusive partnership with Upbit. As South Korea's lawmakers work to finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions in the country are forming partnerships with global blockchain companies to position themselves for the upcoming regulations. With Korea being one of the most active retail crypto markets globally, banks are gearing up to handle the anticipated corporate and cross-border activity once the Digital Asset Basic Act is implemented, providing clarity on the treatment of stablecoins, custody, and tokenized assets under Korean law.