Several Filipino banks are set to launch a multi-bank peso stablecoin called PHPX later this year. This initiative involves UnionBank of the Philippines, Rizal Commercial Banking, Cantilan Bank, and the Rural Bank of Guinobatan, with Singapore’s Just Finance leading the project. PHPX will initially run on the Hedera DLT network and aims to facilitate cross-border payments, particularly for remittances.
UnionBank has a history of blockchain involvement, having created a token-based automated clearing house (ACH) in 2018 to support rural banks. However, the ACH operates in a closed loop, and the new PHPX aims to be publicly exchangeable. UBX CEO John Januszczak emphasizes the need for real-time payments, allowing overseas Filipinos to directly pay for expenses back home.
Remittances are vital for the Philippines, contributing around $40 billion to the economy in 2024, which is about 10% of the GDP. The stablecoin will allow for more control over how remittances are used, enabling direct payments for school tuition and insurance from abroad.
The PHPX will work behind the scenes, allowing users to send money without needing to understand the stablecoin mechanics. The plan includes creating a multi-currency stablecoin exchange to facilitate foreign currency swaps.
To ensure safety, PHPX reserves will be held in segregated bank trust accounts, protecting them from bank failures. Compliance with regulatory standards, including those from the Bangko Sentral ng Pilipinas, is crucial. The launch is anticipated between May and July, with potential future uses in trade and retail payments, subject to regulatory approval.
