KBank, the digital-only bank and exclusive partner of crypto exchange Upbit, has announced plans to trial onchain cross-border remittances in collaboration with Ripple. The partnership aims to revolutionize the traditional correspondent banking model, which often involves lengthy settlement times and hefty fees. By utilizing a blockchain network, onchain remittances can settle transactions in minutes, with lower fees and enhanced transparency.
KBank has completed the initial phase of testing with Ripple's software-as-a-service wallet, Palisade, and is now progressing to the next phase, focusing on the stability of onchain transfers to countries such as the UAE and Thailand. This development is set against the backdrop of South Korea's evolving regulatory landscape, with lawmakers currently finalizing the Digital Asset Basic Act, a comprehensive framework for crypto regulation. As the country's most active retail crypto market, banks are positioning themselves to capitalize on the anticipated growth in corporate and cross-border activity, with KBank at the forefront of this movement.