KBank, the prominent digital-only bank and exclusive partner of the Upbit crypto exchange, has announced plans to test blockchain-based cross-border remittances in collaboration with Ripple. The first phase of their proof-of-concept has been completed, with the second phase currently underway, focusing on the stability of onchain transfers to countries such as the UAE and Thailand.
By utilizing Ripple's Palisade software-as-a-service wallet, acquired as part of Ripple's $4 billion crypto-related investments, KBank aims to improve the speed, cost, and transparency of international transactions. Traditional banking networks, such as SWIFT, often take days to settle and charge multiple fees. In contrast, onchain remittances enable direct transfers across blockchain networks, settling in minutes with reduced fees.
This partnership seeks to harness the potential of blockchain technology to enhance KBank's remittance services. Additionally, KBank is preparing for impending stablecoin regulations in Korea, with ongoing technical verification of remittance use cases for stablecoins as the regulatory framework evolves. The Korean government requires crypto exchange users to link a verified bank account, with KBank holding a monopoly position with Upbit, the country's largest crypto exchange. This partnership has contributed to KBank's significant user base growth, from 2 million in 2020 to 15 million by the end of 2025.
As South Korea's lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions are establishing infrastructure deals 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 following the formalization of stablecoin, custody, and tokenized asset regulations.