KBank, the digital-only bank and exclusive banking partner for the Upbit cryptocurrency exchange, is collaborating with Ripple to test the use of blockchain-based cross-border remittances. The first phase of the proof-of-concept has been completed, utilizing a wallet-based remittance system, and the second phase is now underway to test the stability of on-chain transfers to countries such as the United Arab Emirates and Thailand. By using Palisade, Ripple's software-as-a-service wallet, KBank aims to improve the speed, cost, and transparency of international money transfers.
Most international bank transfers currently rely on correspondent banking networks like SWIFT, which can take several days to settle and incur significant fees. In contrast, on-chain remittances enable direct transfers across a blockchain network, settling in minutes with lower fees. The partnership between KBank and Ripple seeks to capitalize on this approach to enhance the remittance experience for its customers. Additionally, KBank is preparing for the impending stablecoin regulations in Korea by continuing to technically verify remittance use cases for stablecoins as the regulatory framework evolves.
The bank's user base has grown significantly, from approximately 2 million in 2020 to 15 million by the end of 2025, largely due to its exclusive partnership with Upbit, the country's largest cryptocurrency exchange. As the South Korean government finalizes the Digital Asset Basic Act, a comprehensive regulatory framework for cryptocurrencies, major financial institutions in the country are forging partnerships with global blockchain companies to position themselves for the expected growth in corporate and cross-border activities.