KBank, the prominent digital-only bank and exclusive partner of crypto exchange Upbit, has announced its collaboration with Ripple to pilot onchain cross-border remittances. The partnership has completed its initial proof-of-concept phase, utilizing a wallet-based system, and is now progressing to the second phase, which involves testing the stability of onchain transfers to countries such as the UAE and Thailand. By leveraging Ripple's Palisade software-as-a-service wallet, acquired as part of Ripple's $4 billion investment in crypto-related endeavors, KBank aims to enhance the speed, cost, and transparency of its remittance services.
Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can be time-consuming and incur cumulative fees. In contrast, onchain remittances enable direct transactions across a blockchain network, settling in minutes and only charging a network fee. The partnership seeks to explore the potential of this approach in improving KBank's remittance services. Additionally, KBank is preparing for the impending stablecoin regulations in Korea, with plans to continue technical verification of remittance use cases for stablecoins as the regulatory framework evolves.
The bank's user base has grown significantly, from approximately 2 million in 2020 to 15 million by the end of 2025, largely due to its exclusive partnership with Upbit, the country's largest crypto exchange. As Korean 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 globally, banks 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.