KBank, the digital-only bank and exclusive partner of crypto exchange Upbit, has announced a collaboration with Ripple to test on-chain cross-border remittances. The partnership has completed its first phase, utilizing a wallet-based remittance system, and is now entering its second phase to assess the stability of on-chain transfers to countries such as the UAE and Thailand. By using Ripple's Palisade software-as-a-service wallet, KBank aims to enhance the speed, cost, and transparency of international transactions.
Traditional banking networks, like SWIFT, often take days to process transactions and incur multiple fees. In contrast, on-chain remittances enable direct transfers across blockchain networks, settling in minutes with lower fees. This partnership seeks to capitalize on the potential of on-chain transactions to improve remittance services for KBank's customers.
Additionally, KBank is preparing for impending stablecoin regulations in Korea by conducting technical verifications for remittance use cases involving stablecoins. The bank's user base has grown significantly, from 2 million in 2020 to 15 million by the end of 2025, partly due to its exclusive partnership with Upbit. As South Korea's lawmakers finalize the Digital Asset Basic Act, a comprehensive regulatory framework for cryptocurrencies, major financial institutions are forming partnerships with global blockchain companies to position themselves for the emerging market.