Introducing the First Bank-Collateralised PHP Stablecoin and Innovative Cross-Border Payment Solutions
SINGAPORE, Nov. 12, 2024 /PRNewswire/ -- A consortium of prominent financial institutions, including the following banks, has announced the launch of PHPX, the first bank-collateralised Philippine Peso (PHP) stablecoin:
- UnionBank of the Philippines (UBX)
- Rizal Commercial Banking Corporation (RCBC)
- Cantilan Bank
- Rural Bank of Guinobatan
- Additional commercial and rural banks
In collaboration with Web3 fintech company JUST Finance, this initiative marks a significant advancement in digital finance, aiming to enhance cross-border payments and remittances for Filipinos worldwide.
JUST Finance, is a joint venture between FSCO and Ayannah.
Key Features of PHPX and the Multi-Currency Exchange:
- Bank-Collateralised Security: PHPX is backed by a consortium of regulated banks and asset managers, ensuring robust financial support and real-time auditing.
- Regulated Distribution: Distributed exclusively through licensed banks to meet stringent compliance and ethical standards.
- Financial Efficiency: Reduces costs and processing times for remittances and foreign exchange (FX) swaps.
- Multi-Currency Conversion: Facilitates seamless swapping of PHPX with major stablecoins, including USDC and EURC, enabling efficient cross-border payments.
- Tokenized Investment Access: Offers opportunities to invest in higher-yield, risk-mitigated tokenized real-world assets such as PHP, USD, and EUR-denominated bonds and ETFs.
Strategic Importance and Market Impact:
With stablecoin transactions exceeding $US9 trillion in the first half of 2024—double the volume of Visa's payments—PHPX addresses the growing demand for secure, compliant digital financial solutions. As the first stablecoin exclusively operated through regulated banking networks, PHPX sets a new standard for trust and security in digital finance.
"This initiative empowers Filipinos with secure, high-yield financial tools, fostering a culture of savings and investment," said David Inderias, CEO of JUST Finance. "It's a game-changer for financial inclusion and accessibility, enabling Filipinos to hold PHP on-chain and invest in tokenized assets."
Lito Villanueva, Chairman of the Fintech Alliance Philippines, highlighted, "PHPX's regulated framework will enhance cross-border remittances and payments, providing Filipinos worldwide with faster, cheaper, and more secure financial solutions."
Driving Financial Inclusion and Innovation:
The Digital Asset Alliance's roadmap includes:
- Launching PHPX stablecoin for seamless on-chain PHP holding and conversion.
- Establishing the Multi-Currency Stablecoin Exchange for efficient, cross-border stablecoin transactions.
- Integrating tokenization platforms to democratize access to secure, high-yield investments.
About the Digital Asset Alliance:
The Digital Asset Alliance is a collective of top banks, asset managers, and fintech companies dedicated to advancing financial inclusion in the Philippines. By leveraging blockchain technology, the Alliance aims to build the country's most trusted PHP stablecoin and foster a more inclusive, efficient financial ecosystem.