South Korean internet-only bank Kbank has signed a strategic partnership with blockchain payments company Ripple to test blockchain-based overseas remittances.
According to to local media such as News1, The Korea Herald and Maeil Business, Kbank CEO Choi Woo-hyung and Fiona Murray, Ripple’s director for Asia Pacific signed the agreement at Kbank’s headquarters in Seoul. The bank said the partnership will use Ripple’s global network and blockchain infrastructure to test whether overseas remittances can be made faster, cheaper and more transparent.
Companies are already conducting phased technical verification. The first phase reportedly tested a separate app-based remittance structure, while the second phase is to digitally connect user accounts and internal systems to test the stability of remittances. It includes onchain transfers to countries such as the United Arab Emirates and Thailand, according to local reports.
The tie-up comes as South Korean financial firms test blockchain-based cross-border payment infrastructure, while the country’s stablecoins and digital asset rules are still being debated.
South Korean companies prepare for stablecoin rules
South Korea is considering how to regulate stablecoins as part of broader digital asset legislation. On April 8, South Korea’s ruling Democratic Party prepared a bill that would classify stablecoins as foreign exchange payment instruments and require tokenized real assets to be backed by assets held in trust.
Citing the integrated draft of the proposed Digital Asset Basic Law, Seoul Economic Daily earlier reported that stablecoins used in cross-border transactions would be treated as “means of payment” under the country’s Foreign Exchange Act.
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The policy background may explain why stablecoin and payment blockchain connections are accelerating before the rules become final. Banks, card companies and payment companies appear to be testing infrastructure, partners and use cases while avoiding full commercial launches before legislation is passed.
On March 16, Hana Financial Group, one of South Korea’s largest financial conglomerates, signed a business agreement with Standard Chartered Group of the United Kingdom to cooperate in various sectors, including foreign exchange and digital assets.
The South Korean conglomerate also earlier joined together with USDC-issuer Circle and major US crypto exchange Crypto.com to promote stablecoin-based payments for foreign visitors to the country, according to The Korea Times.
March 5, Asia Business Daily reported that South Korean payments company Danal will officially launch a digital asset payment service for foreign visitors in Korea in partnership with Binance Pay.
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