Emily Walker
The adoption of cryptocurrency is on the rise in a Southeast Asian nation, thanks to a collaboration between local banks aiming to introduce a new stablecoin for its citizens interested in digital investments.
Four banks in the Philippines are set to launch a multi-bank stablecoin, facilitating broader participation in the cryptocurrency sector and enhancing cross-border transactions in the country.
Introducing a New Stablecoin
A new cryptocurrency backed by the Philippine Peso will enable instant cross-border remittances within the year.
According to blockchain analyst Ledger Insights, a partnership formed by UnionBank of the Philippines, Rizal Commercial Banking, Cantilan Bank, and Rural Bank of Guinobatan is set to introduce a multi-issuer Philippine stablecoin, paving the way for innovative financial solutions in the region.
Later this year, several Filipino banks plan to launch the PHPX stablecoin for cross border remittances & more
On @hedera DLT@UBXph @d_inderias
— Ledger Insights (@LedgerInsights) January 9, 2025
“Later this year, several Filipino banks plan to launch the PHPX stablecoin for cross border remittances & more on Hedera DLT,” stated Ledger Insights in their announcement.
The four banks will collaborate to unveil PHPX, a fiat-backed stablecoin tied to the Philippine peso.
As per the blockchain analysis, the PHPX aims to improve international payments and increase financial inclusion within the Philippines, leveraging the Hedera decentralized ledger technology (DLT) network.
Filipino crypto enthusiasts should anticipate using the PHPX token for cross-border transactions starting in the middle of this year, with the launch expected between May and July.
Simplifying Cross-Border Remittances
The aim of the partnership among these banks is to enhance payment processes for Filipinos abroad, allowing for the exchange of stablecoins across various currencies.
UnionBank of the Philippines leads this initiative through its fintech branch, UBX, which has been investigating the application of blockchain technology in local finance, including a quasi-stablecoin network.
“We aim to create something that is publicly tradable to support use cases beyond our own system,” stated UBX CEO John Januszczak in an interview with Ledger Insights.
Benefits for Overseas Filipino Workers
The Philippine banks noted that overseas workers sending money home would find the PHPX particularly advantageous, as it facilitates real-time remittances.
Januszczak mentioned that these workers often remit money to cover expenses such as their children’s education.
“Our goal is for Filipinos earning abroad to pay their children’s tuition directly from overseas, with immediate effect,” explained the UBX executive.
Ledger Insights elaborated that involved banks will manage the backend for the stablecoins, allowing PHPX coins to be deposited or transferred to bank accounts, GCash wallets, or collected in cash over the counter.
Image sourced from Pixabay, chart from TradingView