KBank, the digital-only bank and exclusive banking partner for the Upbit crypto exchange, is collaborating with Ripple to test on-chain cross-border remittances. The initial phase of the proof-of-concept has been completed, and the companies are now assessing the stability of on-chain 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 technologies. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can be time-consuming and incur significant fees. In contrast, on-chain remittances enable direct fund transfers across a blockchain network, settling in minutes and reducing fees.
The partnership aims to enhance the speed, cost, and transparency of remittance services for KBank's customers. Additionally, KBank is preparing for upcoming stablecoin regulations in Korea and plans to continue technical verification of remittance use cases for stablecoins as the regulatory framework evolves. With Korean lawmakers currently finalizing the Digital Asset Basic Act, major financial institutions are forging infrastructure deals with global blockchain companies to position themselves for the emerging crypto market.