KBank, the prominent digital-only bank and exclusive partner of crypto exchange Upbit, has announced plans to pilot onchain cross-border remittances in collaboration with Ripple. Following the successful completion of the first phase of a proof-of-concept using a wallet-based remittance system, the two companies are now entering the second phase, focusing on testing the stability of onchain transfers to countries such as the UAE and Thailand.
KBank is utilizing Palisade, a software-as-a-service wallet acquired by Ripple as part of its $4 billion investment in crypto-related ventures. Traditional international bank transfers rely on correspondent banking networks like SWIFT, which can take several days to settle and incur significant fees at each intermediary. In contrast, onchain remittances enable direct fund transfers across a blockchain network, settling in minutes with fees paid only to the network. The partnership between KBank and Ripple aims to enhance speed, cost, and transparency for remittance customers.
Additionally, KBank is preparing for impending stablecoin regulations in Korea by continuing technical verification of remittance use cases for stablecoins as the regulatory framework evolves. Under current Korean regulations, crypto exchange users are required to link a verified bank account before trading, with each major exchange paired exclusively with one bank.
KBank's monopoly position with Upbit, the country's largest crypto exchange, has contributed to its significant user base growth from 2 million in 2020 to 15 million by the end of 2025. As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions are signing infrastructure deals with global blockchain companies.
Korea boasts one of the most active retail crypto markets globally, with daily trading volumes on local exchanges often surpassing those of mainstream stocks during peak periods. Banks operating in this market are positioning themselves to handle anticipated corporate and cross-border activity once the Digital Asset Basic Act formalizes the treatment of stablecoins, custody, and tokenized assets under Korean law.