KBank, the digital-only South Korean bank that serves as the exclusive banking partner for crypto exchange Upbit, is set to test on-chain cross-border remittances with Ripple, the bank announced Monday.
The two companies have completed the first phase of a proof of concept using a wallet-based funds transfer system and are now in the second phase, testing the stability of on-chain transfers to countries such as the UAE and Thailand.
KBank uses Palisade, Ripple’s software-as-a-service wallet that was acquired earlier this year as part of Ripple’s $4 billion in crypto-related investments.
Most international bank transfers today are routed through correspondent banking networks such as SWIFT, which can take days to settle and charge fees that accumulate with each intermediary.
On-chain fund transfers transfer funds directly across a blockchain network, settled within minutes, with fees paid only to the network rather than the correspondent bank chain.
The Ripple partnership is testing whether KBank can use this approach to improve speed, cost and transparency for its remittance customers.
KBank also indicated that it is preparing for stablecoin regulation in Korea, and 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, with each major exchange associated exclusively with one bank. KBank holds this monopoly position with Upbit, the largest crypto exchange in the country. This deal allowed KBank’s user base to grow from around 2 million in 2020 to 15 million by the end of 2025.
South Korean lawmakers are currently considering the Digital Assets Basic Law, a comprehensive crypto regulatory framework that is being finalized. Major Korean financial institutions have signed infrastructure agreements with global blockchain companies as the law approaches.
Korea is one of the most active crypto retail markets in the world, with daily trading volumes on local exchanges regularly exceeding those of traditional stocks during peak periods. Banks operating in this market are able to handle the corporate and cross-border activities that are expected to follow once the Digital Assets Basic Law formalizes how stablecoins, custody, and tokenized assets will be treated under Korean law.
