KBank, the digital-only bank and exclusive partner of crypto exchange Upbit, has initiated testing of onchain cross-border remittances in collaboration with Ripple. Following the completion of the first phase of a proof-of-concept using a wallet-based remittance system, the two companies are now in the second phase, assessing the stability of onchain transfers to countries such as the UAE and Thailand. By leveraging Ripple's Palisade, a software-as-a-service wallet acquired as part of Ripple's $4 billion investment in crypto-related technologies, KBank aims to improve 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 cumulative fees. In contrast, onchain remittances enable direct fund transfers across a blockchain network, settling in minutes with fees paid only to the network. The partnership between KBank and Ripple seeks to harness this approach to enhance the remittance experience for customers. Additionally, KBank is preparing for upcoming stablecoin regulations in Korea by continuing technical verification of remittance use cases for stablecoins as the regulatory framework evolves.
With Korean regulations requiring crypto exchange users to link a verified bank account before trading, KBank's monopoly position with Upbit has contributed to its user base growth from 2 million in 2020 to 15 million by the end of 2025. As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions are forging infrastructure deals with global blockchain companies. Korea's vibrant retail crypto market, with daily trading volumes on local exchanges often surpassing those of mainstream stocks, is poised for increased corporate and cross-border activity once the Digital Asset Basic Act clarifies the treatment of stablecoins, custody, and tokenized assets under Korean law.