South Korea’s KBank, a digital-only bank serving as the exclusive banking partner for crypto exchange Upbit, has announced its collaboration with Ripple to pilot onchain cross-border remittances. This initiative was revealed by KBank on Monday.
The partnership began with an initial proof-of-concept phase involving a wallet-based remittance system and is currently advancing to the second phase, which focuses on testing the stability of blockchain transfers to regions such as the United Arab Emirates and Thailand.
For this project, KBank utilizes Palisade, Ripple’s software-as-a-service wallet acquired recently under Ripple’s $4 billion crypto investment strategy. Traditional international bank transfers often rely on correspondent banking networks like SWIFT, which can take several days for settlement and impose multi-tiered fees. In contrast, blockchain-based remittances enable direct fund movement across the network, ensuring settlements within minutes with a single fee paid to the network rather than through intermediary banks.
The collaboration aims to determine if KBank can leverage this technology to enhance speed, cost-efficiency, and transparency for its customers involved in cross-border transactions. Additionally, KBank is gearing up for impending stablecoin regulations in Korea by conducting technical assessments of remittance applications involving stablecoins as the legal environment evolves.
Korean regulations mandate that all crypto exchange users link a verified bank account prior to trading. Each major exchange partners exclusively with one bank; KBank holds this exclusive partnership with Upbit, South Korea’s largest crypto exchange. This arrangement has contributed significantly to KBank’s user base expansion from approximately 2 million in 2020 to 15 million by the end of 2025.
South Korean lawmakers are currently deliberating on the Digital Asset Basic Act, an all-encompassing regulatory framework for cryptocurrencies that is nearing completion. In anticipation of this legislation, major financial institutions in Korea have been entering infrastructure agreements with international blockchain firms.
As one of the most dynamic retail crypto markets globally, South Korea sees daily trading volumes on local exchanges frequently surpassing those of traditional stocks during peak times. Banks operating within this market are preparing to manage expected corporate and cross-border activities once the Digital Asset Basic Act clearly defines the regulatory treatment for stablecoins, custody services, and tokenized assets.