KBank, the prominent digital-only bank in South Korea and exclusive banking partner for the crypto exchange Upbit, has announced its collaboration 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 currently underway, focusing on the stability of onchain transfers to countries such as the United Arab Emirates and Thailand. By using Ripple's Palisade wallet, acquired as part of Ripple's $4 billion investment in crypto-related ventures, KBank aims to revolutionize international bank transfers, which typically rely on correspondent banking networks like SWIFT and can take several days to settle, incurring multiple fees.
In contrast, onchain remittances enable direct fund transfers across a blockchain network, settling in minutes and reducing fees. The partnership between KBank and Ripple seeks to improve the speed, cost, and transparency of remittance services for KBank's customers.
Additionally, KBank is preparing for the impending stablecoin regulations in Korea by continuing technical verification of remittance use cases for stablecoins. With the exclusive banking partnership with Upbit, Korea's largest crypto exchange, KBank has experienced significant growth, from 2 million users in 2020 to 15 million by the end of 2025. As South Korea's lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions are forming infrastructure deals with global blockchain companies, positioning themselves for the expected surge in corporate and cross-border activity once the law is formalized.