KBank, the digital-only bank and exclusive banking partner for the crypto exchange Upbit, has announced a collaboration with Ripple to test onchain cross-border remittances. The first phase of the proof-of-concept, which used a wallet-based remittance system, has been completed, and the 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 improve the speed, cost, and transparency of international bank transfers, which typically rely on correspondent banking networks like SWIFT and can take days to settle. Onchain remittances, on the other hand, enable direct fund transfers across a blockchain network, settling in minutes with reduced fees.
The partnership seeks to harness this approach to enhance the remittance experience for KBank's customers. Additionally, KBank is preparing for upcoming stablecoin regulations in Korea and plans to continue technical verification of remittance use cases for stablecoins as the regulatory framework develops.
With the Digital Asset Basic Act being finalized, major Korean financial institutions are forming infrastructure deals with global blockchain companies, and KBank's collaboration with Ripple is a significant step in this direction.