Upbit Partner KBank to Test Onchain Remittances With Ripple

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South Korea’s KBank has partnered with Ripple to test blockchain-based cross-border remittances as the internet-only lender looks at faster and cheaper ways to move money overseas.

The partnership is built around a proof of concept using Ripple’s global network and blockchain infrastructure. KBank said the project will assess whether on-chain transfers can improve the speed, cost and transparency of international remittances.

Pilot Moves Into Second Phase

KBank and Ripple have already completed the first phase of the test, which reviewed a wallet app-based remittance structure. The second phase is now linking customer accounts with KBank’s internal systems in a virtual environment to test transaction stability.

The current phase will focus on transfers to major corridors, including the United Arab Emirates and Thailand. KBank has signed memorandums of understanding in those markets for stablecoin-based remittance cooperation.

The bank said the model could reduce reliance on intermediary banks. That would address two of the biggest problems in traditional remittances: higher fees and slower settlement. KBank expanded from around 2 million users in 2020 to 15 million as of last year, growth the bank has attributed largely to its Upbit partnership.

Ripple Wallet Used in New Test

KBank used an in-house wallet during the first phase of the proof of concept. In the second phase, it is using Ripple’s Palisade, a software-as-a-service digital asset wallet.

The bank is comparing the two approaches. A wallet built in-house gives KBank more flexibility over design, but it also takes more time and money to manage keys, complete security certification, and meet compliance requirements.

Ripple’s Palisade includes security and compliance tools that could make deployment easier if the bank decides to move beyond testing. For now, the work remains a technical trial, not a commercial launch.

KBank Expands Digital Asset Work

KBank is best known in crypto as the banking partner of Upbit, South Korea’s largest digital asset exchange. That relationship has made the lender an important part of the country’s crypto market infrastructure.

The Ripple test shows KBank is also looking beyond exchange banking. The bank is assessing how blockchain rails could support mainstream financial services such as cross-border transfers and future stablecoin payment models. Ripple also partnered with Kyobo Life Insurance earlier this month for tokenized bond transactions.

KBank chief executive Choi Woo-hyung said the partnership would help strengthen the bank’s position in blockchain-based overseas remittance technology. Ripple Asia-Pacific Managing Director Fiona Murray said the company would continue to innovate through its work with KBank.

Stablecoin Rules Shape the Backdrop

The pilot comes as South Korea prepares a broader digital-asset framework that could shape stablecoin and tokenized-payment services. Banks, fintechs and crypto firms are already positioning for that shift as regulators work toward a clearer framework.

For Ripple, the partnership adds another banking use case in Asia, where cross-border payments remain one of its main commercial focuses. The company says its payments infrastructure is built to support real-time global payouts using stablecoins, crypto and local currencies.

For KBank, the test is a way to assess whether blockchain infrastructure can reduce settlement friction without moving straight into a public launch. The results could shape how the bank approaches future remittance, wallet and stablecoin services.