KBank taps Ripple to pilot onchain remittances, aiming to beat SWIFT on speed and cost South Korea’s largest digital-only bank, KBank — the exclusive banking partner for crypto exchange Upbit — has begun testing onchain cross-border remittances with Ripple, the bank announced Monday. The pair have completed phase one of a proof-of-concept using a wallet-based remittance system and have moved into phase two, which is focused on testing the stability of onchain transfers to destinations including the United Arab Emirates and Thailand. KBank is using Palisade, Ripple’s software-as-a-service wallet product that Ripple acquired earlier this year as part of its roughly $4 billion in crypto-related investments. The pilot is designed to see whether moving remittances on blockchain rails can deliver faster settlement, lower fees and greater transparency compared with traditional correspondent-banking routes. Why this matters: most international transfers today go through networks such as SWIFT and pass through multiple intermediary banks. That process can take days and add layered fees at each step. Onchain remittances instead move value directly across a blockchain, settling in minutes and incurring fees paid to the network rather than to a chain of correspondent banks — a potentially significant improvement for cross-border payrolls, remittances and corporate flows. Regulation and product road map KBank also said it is preparing for incoming stablecoin rules in Korea and will continue technical evaluations of stablecoin-based remittances as the legal framework evolves. Lawmakers are finalizing the Digital Asset Basic Act, a comprehensive crypto regulatory bill that would clarify how stablecoins, custody and tokenized assets are treated under Korean law. Context in Korea’s market Korea is one of the world’s most active retail crypto markets; trading volumes on local exchanges often outpace mainstream stocks during peaks. Local regulation requires crypto exchange users to link a verified bank account to trade, and each major exchange is paired exclusively with one bank. KBank holds that exclusive relationship with Upbit — a pairing that helped grow KBank’s user base from roughly 2 million in 2020 to about 15 million by the end of 2025. Financial institutions across Korea have been striking infrastructure deals with global blockchain firms ahead of the Digital Asset Basic Act taking effect, positioning to handle the corporate and cross-border activity expected once regulatory clarity around stablecoins and tokenization arrives. What to watch next The next phase of KBank’s pilot will reveal whether Palisade-enabled onchain transfers can deliver the operational stability and cost savings banks and remitters expect. If successful, the project could accelerate adoption of blockchain-based remittances among Korean banks and their corporate and retail customers — and offer a practical alternative to legacy correspondent banking networks like SWIFT. Read more AI-generated news on: undefined/news