South Korean digital-only bank KBank, a partner of crypto exchange Upbit, is collaborating with Ripple to pilot onchain cross-border remittances. The initial phase of their proof-of-concept has been completed, focusing on a wallet-based remittance system. The second phase is now underway, testing the stability of onchain transfers to destinations including the United Arab Emirates and Thailand.
KBank is utilizing Palisade, Ripple's software-as-a-service wallet. This initiative aims to bypass traditional correspondent banking networks like SWIFT, which are often slow and costly due to multiple intermediaries. Onchain remittances offer a direct transfer across a blockchain network, settling within minutes with a single network fee.
The bank is also preparing for potential stablecoin regulations in South Korea, continuing technical verification for stablecoin remittance use cases as the legal framework evolves. KBank's exclusive partnership with Upbit, the nation's largest crypto exchange, has significantly boosted its user base from 2 million in 2020 to 15 million by the end of 2025.
This collaboration occurs as South Korea moves towards finalizing a comprehensive crypto regulatory framework, the Digital Asset Basic Act. Major financial institutions are actively forming infrastructure deals with global blockchain companies in anticipation of the new law.