KBank and Ripple have already completed the first phase of the PoC, which involved verifying a wallet app-based remittance system
Crypto News
South Korea's KBank has entered a strategic partnership with Ripple to develop a proof-of-concept (PoC) for on-chain cross-border remittances. The two companies will assess whether blockchain infrastructure can improve the speed, cost, and transparency of international transfers, according to multiple local media reports.
KBank and Ripple have already completed the first phase of the PoC, which involved verifying a wallet app-based remittance system. The second phase, currently underway, will test the stability of on-chain remittances in a virtual environment, including transfers to countries such as the UAE and Thailand.
For the second phase, KBank is using Ripple's software-as-a-service wallet application, Palisade, which already meets international security standards. The partnership may expand to support KBank's live cross-border remittance system and additional digital asset initiatives, according to the reports.
KBank is the sole banking partner for Upbit, South Korea's largest crypto exchange. Under local regulations, all Upbit users are required to open an account with KBank to trade fiat currency for crypto. That relationship contributed to KBank's user base growing from around 2 million in 2020 to 15 million by the end of last year.
The Ripple partnership is part of a broader wave of deals between South Korean financial institutions and global blockchain firms ahead of the country's upcoming Digital Asset Basic Act, a comprehensive regulatory framework for cryptocurrencies. Earlier this month, Ripple also partnered with Kyobo Life Insurance for tokenized government bond transactions conducted through Ripple Custody.
KBank's announcement was made on Monday. The bank said the PoC is designed to leverage Ripple's blockchain infrastructure and global network, though no timeline for a live deployment has been confirmed.
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