KBank, the digital bank serving as the primary banking partner for the Upbit cryptocurrency exchange, has announced a collaboration with Ripple to pilot onchain cross-border remittances. Following the successful completion of the first phase of a proof-of-concept using a wallet-based remittance system, the two companies are now in the second phase, testing the stability of onchain transfers to countries including the UAE and Thailand. KBank is utilizing 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 cumulative 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 and plans to continue technical verification of remittance use cases for stablecoins as the regulatory framework develops. The Korean government requires all crypto exchange users to link a verified bank account before trading, with each major exchange paired exclusively with one bank. As the banking partner for Upbit, Korea's largest crypto exchange, KBank has experienced significant growth, expanding its user base from 2 million in 2020 to 15 million by the end of 2025. With the impending implementation of the Digital Asset Basic Act, a comprehensive crypto regulatory framework, major Korean financial institutions are forming infrastructure partnerships 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. As the Digital Asset Basic Act takes effect, banks operating in this market are positioning themselves to handle the anticipated corporate and cross-border activity, particularly with regards to stablecoins, custody, and tokenized assets.