K Bank is joining hands with global blockchain company Ripple to verify overseas remittance technology.

K Bank said on April 27 it has signed a strategic partnership with Ripple and is conducting a proof of concept for blockchain-based overseas remittance technology. The signing ceremony was held at its headquarters in Seoul, attended by K Bank CEO Choi Woo-hyung (최우형) and Fiona Murray, Ripple’s Asia-Pacific (APAC) head, among others.

The two companies plan to use Ripple’s global network and blockchain infrastructure to verify whether overseas remittances can be improved in speed, cost and transparency. Key areas of cooperation include a proof of concept based on Ripple digital wallets, collaboration on overseas remittance models and expansion into digital asset areas.

The proof of concept is being carried out in stages. The first stage reviewed a remittance structure based on a separate app, and the second stage is virtually linking customer accounts and internal systems to confirm remittance stability.

In the second stage, the partners are testing an on-chain remittance method that directly transfers funds through a blockchain network to destinations including the UAE and Thailand. The structure minimises intermediary banks to speed up transfers and cut costs.

K Bank used a wallet it developed in-house in the first stage, and is applying Ripple’s SaaS-based digital wallet, Palisade, in the second stage to compare efficiency. The bank said an in-house approach offers design flexibility but requires significant cost and time to respond to regulations such as anti-money laundering, compliance with overseas sanctions under OFAC and security certification, while the SaaS approach already has security systems and a regulatory response foundation in place, allowing faster adoption.

K Bank said it will continue to verify various potential uses, including overseas remittances, in preparation for future legislation on stablecoins.

Choi said, "This will be an opportunity to strengthen competitiveness in blockchain-based overseas remittances." Murray said, "We will continue innovation through cooperation with K Bank."