Key Takeaways:
- South Korea’s KBank partners with Ripple on a Proof-of-Concept for on-chain cross-border transactions.
- KBank will utilize Ripple’s blockchain infrastructure and global network to explore faster settlement methods as compared to traditional remittance channels.
KBank, South Korea’s internet-only bank, has partnered with Ripple to test on-chain cross-border remittance solutions. According to local media reports, the two companies will collaborate on a Proof-of-Concept (PoC) aimed at improving speed, cost, and transparency of cross-border transfers. KBank will utilize Ripple’s blockchain infrastructure and global network to explore faster settlement methods as compared to traditional remittance channels.
Testing Wallet-Based On-Chain Remittance Stability
Ripple and KBank have already completed the first phase of the PoC testing, which validated a wallet app-based remittance system. In the ongoing second phase, the two firms will evaluate the stability of the on-chain remittances within a virtual environment. This phase includes simulated transfers to international destinations such as Thailand and the UAE. To support the testing, KBank is utilizing Ripple’s software-as-a-service wallet application called Palisade to meet international security standards.
South Korea Sees Surge in Blockchain Collaborations
The collaboration could expand beyond testing to support KBank’s live cross-border remittance system and broader digital asset initiatives. The announcement comes amid a surge in partnerships between South Korean financial institutions and global blockchain companies ahead of the country’s Digital Asset Basic Act, a comprehensive regulatory framework for cryptocurrencies.
KBank’s involvement is particularly notable given its role as the exclusive banking partner of Upbit, a South Korean crypto exchange. All users of the crypto exchange must sign up with the bank to trade fiat for crypto due to local regulations. This partnership has been exponential in the bank’s growth in the past five years, with its users increasing from 2 million in 2020 to 15 million as of the end of last year.
