KBank, the digital-only bank and exclusive partner of crypto exchange Upbit, is collaborating 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, and the second phase is now underway, focusing on the stability of onchain transfers to countries such as the UAE and Thailand. Unlike traditional international bank transfers, which often take days to settle and incur cumulative fees through correspondent banking networks like SWIFT, onchain remittances enable direct fund transfers across a blockchain network, settling in minutes with fees paid only to the network.
This partnership aims to enhance speed, cost, and transparency for KBank's remittance customers. Additionally, KBank is preparing for impending stablecoin regulations in Korea by continuing technical verification of remittance use cases for stablecoins as the legal framework evolves.
With Korean regulations mandating verified bank accounts for crypto exchange users and each major exchange paired exclusively with one bank, KBank holds a monopoly position with Upbit, the country's largest crypto exchange, which has contributed to its user base growth from 2 million in 2020 to 15 million by 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, positioning themselves for the expected surge in corporate and cross-border activity once the law takes effect.