K Bank, the South Korean digital-only bank that serves as the exclusive banking partner of cryptocurrency exchange Upbit, will test on-chain cross-border remittances with Ripple, the bank announced on Monday.
The companies have completed the first phase of a proof of concept using a wallet-based money transfer system and are currently in the second phase, testing the stability of on-chain money transfers to countries such as the United Arab Emirates and Thailand.
KBank uses Palisade, Ripple’s software-as-a-service wallet, which was acquired earlier this year as part of Ripple’s $4 billion cryptocurrency investment.
Currently, most international bank transfers go through correspondent banking networks such as SWIFT, which can take several days to clear and each intermediary may charge high fees.
On-chain transfers move funds directly on the blockchain network and are settled in minutes with fees paid only to the network and not to the correspondent banking chain.
The partnership with Ripple will test whether KBank can use its approach to improve speed, cost, and transparency for its remittance customers.
KBank also announced that it is preparing for stablecoin-related regulations in South Korea and plans to continue technical verification of stablecoin remittance use cases in line with the development of the legal framework.
South Korean regulations require all crypto exchange users to link a verified bank account before trading, and each major exchange is exclusively paired with one bank. KBank holds a monopoly position in Upbit, the country’s largest cryptocurrency exchange. The deal increased KBank’s user base from about 2 million in 2020 to 15 million by the end of 2025.
South Korean lawmakers are currently considering a comprehensive virtual currency regulatory framework, the Digital Asset Basic Law, which is in the process of being finalized. Major South Korean financial institutions are signing infrastructure agreements with global blockchain companies in preparation for the law to take effect.
South Korea is one of the most active retail crypto markets in the world, with daily trading volume on local exchanges consistently exceeding that of mainstream stocks at peak times. Banks operating in this market are poised to deal with the corporate and cross-border activities expected after the Digital Asset Basic Act formalizes how stablecoins, custody and tokenized assets will be treated under Korean law.
