KBank, the digital-only bank and exclusive partner of crypto exchange Upbit, is collaborating with Ripple to test blockchain-based cross-border remittances. The two companies have completed the initial phase of a proof-of-concept using a wallet-based system and are now assessing the stability of onchain transfers to countries such as the UAE and Thailand.
By utilizing Palisade, Ripple's software-as-a-service wallet, KBank aims to enhance the speed, cost, and transparency of remittances. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take days to settle and incur multiple fees.
In contrast, onchain remittances enable direct transactions across a blockchain network, settling in minutes with reduced fees. This partnership seeks to determine whether KBank can leverage this approach to improve its remittance services.
Additionally, KBank is preparing for impending stablecoin regulations in Korea by conducting technical verification of remittance use cases for stablecoins. The bank's user base has grown significantly, from 2 million in 2020 to 15 million by the end of 2025, largely due 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 are forging infrastructure deals with global blockchain companies.
With Korea being one of the most active retail crypto markets worldwide, banks are positioning themselves to handle the anticipated corporate and cross-border activity once the Digital Asset Basic Act clarifies the treatment of stablecoins, custody, and tokenized assets under Korean law.