Cryptocurrency is gaining a foothold in a Southeast Asian country after several local banks teamed up to launch a new stablecoin for their citizens to invest in digital assets.
Four Philippine banks are preparing to offer a Multi-bank stablecoin To allow Filipinos to become a part of the cryptocurrency scene, revolutionizing cross-border transactions in the country.
New stablecoin
The new cryptocurrency backed by the Philippine Peso will allow cross-border money transfers in real time during the year.
Blockchain analyst Ledger Insights revealed that Union Bank of the Philippines, Rizal Commercial Banking, Cantillan Bank, and Guinobatan Rural Bank have teamed up to launch a multi-issuance Philippine stablecoin, leading the way for a new innovative financial instrument in the developing Asian country.
Later this year, several Philippine banks plan to launch the PHPX stablecoin for cross-border money transfers and more
on @hedera DLT@UBXph @d_inderias
Deep diving:
– Ledger Insights (@LedgerInsights) January 9, 2025
“Later this year, several Philippine banks plan to launch the PHPX stablecoin for cross-border transfers and more on Hedera DLT,” Ledger Insights said in a post.
The four local banks will collaborate to offer PHPX, a stablecoin backed by the Philippine fiat currency, a stablecoin backed by the peso.
PHPX’s goal is to promote cross-border payments and financial inclusion in the Philippines, which will be launched on the Hedera decentralized ledger technology (DLT) network, the blockchain analyst said.
According to the four local banks, Filipino cryptocurrency users can start using the PHPX token in their cross-border operations by the middle of this year since they are looking forward to the new Philippine stablecoin being operational anytime between May and July this year.
Facilitating cross-border money transfers
The multi-bank partnership said the aim of the collaborative effort is to enhance cross-border payments for Filipinos and allow them to exchange stablecoins for different currencies.
This collaborative effort is being led by UnionBank of the Philippines through its fintech subsidiary UBX. The subsidiary has been exploring for years how to use blockchain technology in the local financial industry such as operating a semi-stable network for digital currencies.
“We need to create something that is publicly interchangeable, so we can support use cases outside of our closed-loop system,” said John Januszczak, CEO of UBX, in an interview with Ledger Insights.
PHPX for the benefit of overseas Filipino workers
Filipino banks who work in other countries and send money to their families in the Philippines will benefit greatly from PHPX as it allows real-time money transfers, Philippine banks said.
Januszczak said OFWs usually send their money to someone in the Philippines to take care of bills such as their children’s educational expenses.
“We want Filipinos who earn money in the US (or elsewhere) to be able to pay their children’s school fees directly from the US (and) for that payment to be done in real time,” the UBX executive explained.
Participating banks will have to divest the stablecoins on the backend, Ledger Insights explained, saying PHPX tokens can then be deposited or sent to a “bank account, GCash wallet, or receive cash from an over-the-counter location.” “
Featured image from Pixabay, chart from TradingView
