KBank, the South Korean digital-only bank that serves as the exclusive banking partner of crypto exchange Upbit, is set to test onchain cross-border money transfers 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 now in phase two, testing the stability of onchain transfers to countries including the United Arab Emirates 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 wire transfers today go through correspondent banking networks like SWIFT, which can take days to settle and charge fees that aggravate each intermediary.
Onchain transfers move money directly across a blockchain network and settle in minutes with the fee paid only to the network instead of the chain of correspondent banks.
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-related regulations in Korea, with plans to continue technical verification of remittance use cases for stablecoins as the legal framework evolves.
Korean regulations require all crypto exchange users to associate a verified bank account before trading, with each major exchange exclusively paired with one bank. KBank has that monopoly position with Upbit, the country’s largest crypto exchange. The event helped KBank’s user base grow from around 2 million in 2020 to 15 million by the end of 2025.
South Korea’s lawmakers are currently considering the Digital Asset Basic Act, a comprehensive crypto regulatory framework that is nearing completion. Major Korean financial institutions have signed infrastructure agreements with global blockchain companies in the run-up to the law taking effect.
Korea is one of the most active retail crypto markets in the world, with daily trading volumes on local exchanges regularly exceeding those of mainstream stocks during peak periods. Banks operating in this market are positioning themselves to handle the corporate and cross-border activity expected to follow as the Digital Asset Basic Act formalizes how stablecoins, custody and tokenized assets are treated under Korean law.
