South Korea's KBank and Ripple are teaming up to fix international money transfers

KBank, the South Korean digital-only bank that serves as the exclusive banking partner for crypto exchange Upbit, is set to test onchain cross-border remittances with Ripple, the bank said 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 is using 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 route through correspondent banking networks like SWIFT, which can take days to settle and charge fees that compound at each intermediary.

Onchain remittances move funds directly across a blockchain network, settling in minutes with the fee paid only to the network rather than the chain of correspondent banks.

The Ripple partnership tests whether KBank can use that approach to improve speed, cost, and transparency for its remittance customers.

KBank also indicated 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 develops.

Korean regulations require all crypto exchange users to link a verified bank account before trading, with each major exchange paired exclusively with one bank. KBank holds that monopoly position with Upbit, the country's largest crypto exchange. The arrangement helped KBank's user base grow from roughly 2 million in 2020 to 15 million by the end of 2025.

South Korea lawmakers are currently mulling the Digital Asset Basic Act, 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 taking effect.

Korea is one of the most active retail crypto markets in the world, with daily trading volumes on local exchanges regularly outpacing those of mainstream stocks during peak periods. Banks operating in this market are positioning to handle the corporate and cross-border activity expected to follow once the Digital Asset Basic Act formalizes how stablecoins, custody, and tokenized assets are treated under Korean law.