KBank, a South Korean digital bank that is the exclusive banking partner of cryptocurrency exchange Upbit, will test on-chain cross-border remittances with Ripple, the bank said on Monday.
The two companies have completed the first phase of a proof-of-concept using a wallet-based remittance system and are currently in the second phase, testing the stability of on-chain transfers to countries such as the United Arab Emirates and Thailand.
KBank is using Ripple’s software-as-a-service wallet Palisade, which it acquired earlier this year as part of Ripple’s $4 billion in cryptocurrency-related investments.
Today, most international bank transfers are conducted through correspondent banking networks such as SWIFT, which can take days to settle and incur complex fees at each intermediary.
On-chain remittances move funds directly through the blockchain network, settle in just minutes, and fees are paid only to the network rather than the agent bank chain.
The Ripple partnership tests whether KBank can use this approach to improve speed, cost and transparency for its remittance customers.
KBank also stated that it is formulating regulations related to stablecoins in South Korea and plans to continue technical verification of remittance use cases for stablecoins as the legal framework develops.
South Korean regulations require all cryptocurrency exchange users to link a verified bank account before trading, with each major exchange being paired with only one bank. KBank maintains a monopoly with Upbit, South Korea’s largest cryptocurrency exchange. The arrangement has helped Kasikornbank’s user base grow from about 2 million in 2020 to 15 million by the end of 2025.
South Korean lawmakers are currently considering the Digital Asset Basic Act, a comprehensive cryptocurrency regulatory framework that is being finalized. Ahead of the law taking effect, South Korea’s major financial institutions have been signing infrastructure deals with global blockchain companies.
South Korea has one of the most active retail cryptocurrency markets in the world, with daily trading volumes on local exchanges often exceeding those of mainstream stocks at peak times. Once the Digital Assets Basic Law formalizes how Korean law will treat stablecoins, custody and tokenized assets, banks operating in this market will be prepared to handle the corporate and cross-border activity expected to occur.
