Cryptocurrency is gaining a foothold in the Southeast Asian country as several local banks team up to issue a new stablecoin that allows citizens to invest in digital assets.
Four banks in the Philippines are preparing to introduce it. multibank stablecoin It will enable more Filipinos to join the crypto world and revolutionize cross-border transactions in the country.
new stablecoin
A new cryptocurrency backed by the Philippine peso will enable real-time cross-border remittances by the end of the year.
Blockchain analyst Ledger Insights reports that Union Bank of the Philippines, Rizal Commercial Banking, Cantilan Bank, and Guinobatan Regional Bank are collaborating to launch a multi-issue Philippine stablecoin, a new investment in developing countries in Asia. It has become clear that the company has led the way to innovative financial products.
Later this year, multiple Philippine banks plan to launch PHPX stablecoin for cross-border remittances and more.
above @Hedera DLT@UBXph @d_indias
Let's dig deeper:https://t.co/Ykkfd8jIFU
— Ledger Insights (@LedgerInsights) January 9, 2025
“Later this year, multiple Philippine banks plan to launch PHPX stablecoins for cross-border remittances and more with Hedera DLT,” Ledger Insights said in a post.
Four domestic banks are working together to introduce “PHPX'', a peso-backed stablecoin backed by the Philippine legal currency.
The blockchain analyst said PHPX's goal is to strengthen cross-border payments and financial inclusion in the Philippines, which will be launched on the Hedera Distributed Ledger Technology (DLT) network.
Cryptocurrency users in the Philippines are expected to cross the border by the middle of this year as new Philippine stablecoins look set to go live between May and July, according to four local banks. It is said that you can start using PHPX tokens.
Easier cross-border remittances
The multi-bank partnership said the cooperation aims to enhance cross-border payments for Filipinos and allow them to exchange stablecoins in different currencies.
This collaboration is being led by Union Bank of the Philippines through its fintech subsidiary UBX. The subsidiary has long been exploring ways to leverage blockchain technology in the local financial industry, including operating a semi-stablecoin network.
“We need to create something publicly interchangeable so that we can support use cases outside of our own closed-loop ecosystem,” UBX CEO John Januszczak said in an interview with Ledger Insights. spoke.
PHPX benefits overseas Filipino workers
Philippine banks said Filipinos working in other countries and sending money to their families in the Philippines will greatly benefit from PHPX, which allows for real-time money transfers.
Januszczak said overseas Filipino workers typically send money to someone in the Philippines to take care of payments such as their children's education fees.
“We want Filipinos who earn money in the U.S. (or elsewhere) to be able to pay their children's school fees directly from the U.S. (and) we want those payments to happen in real time,” UBX executive explained.
Ledger Insights explains that participating banks must abstract stablecoins on the backend, and then states that PHPX coins can be deposited or transferred to “bank accounts, GCash wallets, or over-the-counter cash pickup.” Ta. ”
Featured image from Pixabay, chart from TradingView
