South Korea’s internet-only lender Kbank has partnered with blockchain payments firm Ripple to pilot overseas remittances using blockchain technology.
According to local media reports, Kbank CEO Choi Woo-hyung and Ripple’s Asia-Pacific managing director Fiona Murray signed the agreement at the bank’s headquarters in Seoul. The collaboration will leverage Ripple’s global network and infrastructure to test whether cross-border transfers can be made faster, more cost-efficient and transparent.
The companies have already begun phased technical testing. The first phase focused on an app-based remittance setup, while the second phase involves linking customer accounts and internal systems to assess transaction stability. Trials reportedly include onchain transfers to destinations such as the United Arab Emirates and Thailand.
The partnership comes as South Korean financial institutions increasingly explore blockchain-based cross-border payment systems, even as the country continues to shape its regulatory framework for stablecoins and digital assets.
Industry prepares for new stablecoin rules
South Korea is currently considering how to regulate stablecoins under broader digital asset legislation. Earlier this month, the ruling Democratic Party drafted a proposal that would classify stablecoins as foreign exchange payment instruments and require tokenized real-world assets to be backed by assets held in trust.
Reports have also indicated that stablecoins used in cross-border transactions could be treated as a formal means of payment under the country’s Foreign Exchange Transactions Act.
This evolving regulatory backdrop appears to be driving a wave of partnerships and pilot programs, as banks and payment firms test infrastructure and use cases ahead of formal rulemaking.
In March, Hana Financial Group signed an agreement with the UK’s Standard Chartered to collaborate on areas including foreign exchange and digital assets. The group has also worked with Circle and Crypto.com to explore stablecoin-based payments for foreign visitors.
Separately, payments firm Danal is preparing to launch a digital asset payment service for international visitors in partnership with Binance Pay.
