KBank, the digital-only bank serving as the exclusive banking partner for the crypto exchange Upbit, has announced plans to test onchain cross-border remittances in collaboration with Ripple. The first phase of the proof-of-concept, which involved a wallet-based remittance system, has been completed, and the second phase is currently underway, focusing on testing the stability of onchain transfers to countries such as the United Arab Emirates and Thailand. KBank is leveraging Palisade, Ripple's software-as-a-service wallet acquired as part of its $4 billion investment in crypto-related ventures. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take several days to settle and incur compound 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 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 conducting technical verification of remittance use cases for stablecoins as the legal framework develops.
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. As South Korean lawmakers finalize the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major financial institutions in the country are forming infrastructure deals with global blockchain companies. Korea boasts 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.