KBank, the digital-only bank and exclusive partner of the Upbit crypto exchange, has announced a collaboration with Ripple to test onchain cross-border remittances. The first phase of the proof-of-concept, utilizing a wallet-based remittance system, has been completed, with the second phase now underway to assess the stability of onchain transfers to countries such as the UAE and Thailand. KBank is utilizing Palisade, Ripple's software-as-a-service wallet, which was acquired as part of Ripple's $4 billion investment in crypto-related ventures.
Traditional international bank transfers often rely on correspondent banking networks like SWIFT, resulting in prolonged settlement times and cumulative fees. In contrast, onchain remittances enable direct fund transfers across a blockchain network, settling in minutes with fees paid solely to the network. The partnership aims to enhance the speed, cost, and transparency of remittance services for KBank's customers. Furthermore, KBank is preparing for impending regulations on stablecoins in Korea, with plans to continue technical verification of remittance use cases as the regulatory framework evolves.
Korean regulations mandate that crypto exchange users link a verified bank account, with each major exchange paired exclusively with one bank. KBank's monopoly position with Upbit has contributed to 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. With Korea being one of the most active retail crypto markets globally, banks are positioning themselves to handle the anticipated corporate and cross-border activity once the Digital Asset Basic Act formalizes the treatment of stablecoins, custody, and tokenized assets under Korean law.