Cryptocurrency is gaining momentum in the Southeast Asian country after several local banks joined forces to launch a new stablecoin for its citizens to invest in digital assets.
Four Philippine banks are preparing to launch a multi-bank stablecoin to further allow Filipinos to become part of the cryptocurrency landscape, revolutionizing cross-border transactions.
The new Stablecoin
A new cryptocurrency backed by the Philippine Peso will allow real-time cross-border remittances within a year.
Blockchain analyst, Ledger Insights, revealed that UnionBank of the Philippines, Rizal Commercial Banking, Cantilan Bank, and Rural Bank of Guinobatan have partnered to launch a multi-issue, leading Philippine stablecoin a form of new financial instrument in the developing world of Asia.
Later this year, several banks in the Philippines plan to launch the PHX stablecoin for cross-border withdrawals and more.
Opened @hedera DLT@UBXph @d_inderias
Deep dive:
— Ledger Insights (@LedgerInsights) January 9, 2025
“Later this year, several banks in the Philippines plan to launch the PHX stablecoin for cross-border remittances and more on Hedera DLT,” Ledger Insights said in a post.
Four local banks will join forces to launch PHPX, a stablecoin backed by the Philippine fiat currency, a stablecoin backed by the peso.
A blockchain analyst said PHPX’s mission is to promote cross-border payments and financial inclusion in the Philippines, which will be launched on the Hedera decentralized ledger technology (DLT) network.
According to four local banks, Filipino crypto users can start using the PHX token to transfer within the year as they expect the Philippine stablecoin to be operational anytime between May and July this year.
Easy Cross Border Remittances
The multi-bank partnership said the aim of the collaborative effort is to strengthen cross-border payments for Filipinos and allow them to exchange stablecoins for different currencies.
Leading the collaborative effort is UnionBank of the Philippines through fintech subsidiary UBX. Its subsidiary has been exploring for years how to use blockchain technology in the local financial industry as a quasi-stablecoin network.
“We need to create something that can be changed publicly, so that we can support use cases outside of our closed ecosystem,” UBX CEO John Januszczak told Ledger Insights in an interview.
PHPX To Benefit Filipino Overseas Workers
Banks in the Philippines say that Filipinos who work abroad and send money to their families in the Philippines will benefit greatly from PHXX because it allows for real-time remittances.
Januszczak said Filipino overseas workers often send their money to another Filipino to take care of debts such as their children’s education expenses.
“We want Filipinos who earn money in the US (or elsewhere) to be able to pay their children’s school fees directly in the United States (and) so that payment can be made in real time,” explained the UBX official.
Ledger Insights explained that participating banks will have to issue the coins on the backend, saying that after that, PHX coins can be deposited or sent “to a bank account, GCash wallet, or cash pickup at a counter- counter. “
Featured image from Pixabay, chart from TradingView