KBank, the digital-only bank serving as the exclusive banking partner for crypto exchange Upbit, has announced plans to test onchain cross-border remittances in collaboration with Ripple. The two companies have completed the initial phase of a proof-of-concept using a wallet-based remittance system and are currently in the second phase, assessing the stability of onchain transfers to countries such as the United Arab Emirates and Thailand.
By leveraging Palisade, Ripple's software-as-a-service wallet, KBank aims to improve the speed, cost, and transparency of international transactions for its customers. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take days to settle and incur significant fees. In contrast, onchain remittances enable direct transfers across a blockchain network, settling in minutes with lower fees. The partnership between KBank and Ripple seeks to explore the potential of this approach.
Additionally, KBank is preparing for impending stablecoin regulations in Korea by continuing technical verification of remittance use cases for stablecoins as the regulatory framework develops. The bank's user base has grown significantly, from 2 million in 2020 to 15 million by the end of 2025, due in part to its exclusive partnership with Upbit, the country's largest crypto exchange.
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. With Korea being one of the most active retail crypto markets globally, banks are positioning themselves to handle the anticipated corporate and cross-border activity once the regulatory framework is formalized.