KBank, the digital-only bank and exclusive banking partner for the Upbit crypto exchange, has announced plans to test onchain cross-border remittances in partnership with Ripple. The two companies have completed the initial phase of a proof-of-concept using a wallet-based remittance system and are now entering the second phase, which involves testing the stability of onchain transfers to countries such as the United Arab Emirates and Thailand.
By utilizing Ripple's Palisade wallet, acquired as part of Ripple's $4 billion investment in crypto-related ventures, KBank aims to enhance the speed, cost, and transparency of its remittance services. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take days to settle and incur significant fees.
In contrast, onchain remittances enable direct fund transfers across a blockchain network, resulting in faster settlement times and lower fees. The partnership between KBank and Ripple seeks to explore the potential of this approach in improving remittance services for customers. Additionally, KBank is preparing for the implementation of stablecoin-related regulations in Korea, with plans to continue technical verification of remittance use cases for stablecoins as the regulatory framework develops. The bank's user base has grown significantly, from approximately 2 million in 2020 to 15 million by the end of 2025, due in part to its exclusive partnership with Upbit.
As South Korea's lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions in the country 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 increase in corporate and cross-border activity once the regulatory framework is formalized.