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 two companies have completed the initial phase of a proof-of-concept using a wallet-based remittance system and are now in the second phase, evaluating the stability of on-chain transfers to countries including 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 ventures.
Traditional international bank transfers often rely on correspondent banking networks like SWIFT, resulting in lengthy settlement times and cumulative fees. In contrast, on-chain 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 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 by continuing technical verification of remittance use cases for stablecoins as the regulatory framework develops.
With Korean regulations requiring crypto exchange users to link a verified bank account before trading, KBank holds a monopoly position with Upbit, the country's largest crypto exchange. This arrangement has contributed to KBank's 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 signing infrastructure deals with global blockchain companies. Korea is one of the most active retail crypto markets globally, with daily trading volumes on local exchanges often surpassing those of mainstream stocks during peak periods.
Banks operating in this market are positioning themselves to handle the anticipated corporate and cross-border activity once the Digital Asset Basic Act formalizes the treatment of stablecoins, custody, and tokenized assets under Korean law.