KBank, the South Korean digital-only bank that acts as the exclusive banking partner for crypto exchange Upbit, is ready to test cross-border on-chain remittances with Ripple, the bank said on Monday.
The two companies completed the first phase of a proof of concept using a wallet-based remittance system and are now in phase two, testing the stability of chain transfers to countries such as the United Arab Emirates and Thailand.
KBank is using Palisade, Ripple’s software-as-a-service wallet that was acquired earlier this year as part of Ripple’s $4 billion cryptocurrency investments.
Today, most international bank transfers are made through correspondent banking networks like SWIFT, which can take days to clear and charge fees that accumulate at each intermediary.
On-chain remittances move funds directly through a blockchain network, settling in minutes and the fee is paid solely to the network rather than the chain of correspondent banks.
The partnership with Ripple tests whether KBank can use that approach to improve speed, cost and transparency for its remittance customers.
KBank also indicated that it is preparing for regulations related to stablecoins in Korea, with plans to continue technical verification of remittance use cases for stablecoins as the legal framework develops.
Korean regulations require all crypto exchange users to link a verified bank account before trading, and every major exchange is paired exclusively with one bank. KBank maintains that monopoly position with Upbit, the country’s largest crypto exchange. The deal helped KBank’s user base grow from about 2 million in 2020 to 15 million by the end of 2025.
South Korean lawmakers are currently mulling over the Basic Law on Digital Assets, a comprehensive crypto regulatory framework that is being finalized. Major Korean financial institutions have been signing infrastructure deals with global blockchain companies in the run-up to the law coming into force.
Korea is one of the most active retail crypto markets in the world, with daily trading volumes on local exchanges regularly exceeding those of major stocks during peak periods. Banks operating in this market are positioning themselves to handle the corporate and cross-border activity that is expected to follow once the Basic Law on Digital Assets formalizes how stablecoins, custody, and tokenized assets are treated under Korean law.
