KBank and Ripple test onchain remittances with Palisade

KBank and Ripple announced Monday they are in phase-two of a proof-of-concept that uses Ripple's Palisade wallet to test onchain cross-border remittances, with virtual transfers to the UAE and Thailand.

The firms completed an initial phase that verified a wallet app–based remittance system. The current technical phase runs in a virtual environment to evaluate transaction stability, interoperability, speed, cost and transparency for onchain transfers.

The proof-of-concept is built on Ripple's blockchain infrastructure and global network to assess whether onchain processing can shorten settlement times and reduce fees compared with existing payment rails. KBank is using the Palisade software-as-a-service wallet in the tests because it meets international security standards.

The PoC could be expanded to support a live cross-border remittance service for KBank customers and to test additional digital-asset and custody functions. The project is focused on technical performance before any regulatory approvals or commercial launches; no timetable for a live service has been provided.

The collaboration forms part of a series of partnerships between South Korean financial firms and global blockchain companies ahead of the Digital Asset Basic Act, the country's planned framework for cryptocurrencies. Ripple is separately working with Kyobo Life Insurance to test tokenized government bond transactions using Ripple Custody.

KBank is the sole banking partner for Upbit; under local rules Upbit users must open accounts with KBank to convert fiat to crypto. KBank's relationship with the exchange helped grow its user base from about 2 million in 2020 to roughly 15 million by the end of last year.