Filipino banks to launch multi issuer stablecoin PHPX on Hedera DLT

Source Cryptopolitan

Four Filipino banks, UnionBank of the Philippines, Rizal Commercial Banking, Cantilan Bank, and the Rural Bank of Guinobatan, announced they plan to launch a multi-bank peso stablecoin, PHPX, later this year. The coin will initially run on the Hedera DLT network.

JUST Finance will initiate the project, but the banks will still have a significant role in governing the stablecoin, according to reports. The banks aim to boost cross-border payments with the stablecoin and also exchange stablecoins in different currencies.

Filipino banks plan to launch PHPX stablecoin on Hedera DTL

UBX, UnionBank’s subsidiary, has been in the blockchain space managing a quasi-cryptocurrency in a closed-loop system. In 2018, UBX set up a token-based automated clearing house (ACH) to enable payments for rural and community banks that were not members of the national retail payment system (NRPS) to funnel through UnionBank. UBX’s ACH system leveraged a permissioned version of Ethereum, Phoenix token (PHX).

David Inderias, CEO of JUST Finance, said that the stablecoin might face the challenge of compliance with Basel Committee crypto asset rules. He revealed that if a bank stablecoin is classified with other cryptocurrencies (Group 2), it could get expensive for the banks to hold them. Inderias also added that the latest Basel iteration required the DLT network to be permissioned to qualify a stablecoin as a Group 1b (low-risk) stablecoin. The CEO said that it was the reason for choosing the Hedera DLT as the initial network for the stablecoin.

The Bangko Sentral ng Pilipinas (BSP) also requires any coin in the banks to comply with the EU’s MiCA regulations or regional equivalents.

UBX’s CEO, John Januszczak, mentioned that the financial technology company was ready to take the next step.

“We need to create something that is publicly exchangeable, so that we can support use cases outside of our own closed loop ecosystem.”

-John Januszczak, CEO of UBX.

Januszczak said he was open to the concept of PHPX when David Inderias and Mikko Perez from JUST Finance brought up the idea to UBX since he was looking forward to supporting stablecoins beyond the Phoenix token created by UBX.

On top of being used for cross-border payments, the banks also plan to leverage PHPX for remittances.

Filipino banks want to use PHPX for remittance services

Remittances from Filipinos working abroad are a crucial source of funds in the Philippines. The World Bank revealed that the Philippines is the fourth largest recipient of remittances from citizens living abroad, which totaled $40 billion last year, representing ~10% of the nation’s GDP. 

Januszczak noted that Filipinos abroad have limited control of their funds after sending the money to the Philippines. He hopes to change that by offering remittance services through the stablecoin PHPX.

The CEO also highlighted that the banks involved will need to abstract the stablecoins in the backend. After that, the stablecoins can be deposited into a bank account, a GCash wallet, or cash pickup at an over-the-counter location. Januszczak said it will enable banks to provide seamless on- and off-ramping.

JUST Finance also plans to hold most of the PHPX token reserves in segregated bank trust accounts, holding government bonds with a small cash balance for short-term settlement. As a multi-issuer token, once a bank goes under, the stablecoin will go bankrupt remotely, except in the case of disappearance caused by fraud. Inderias revealed that since JUST Finance does not hold cash, the PHPX tokens should also be safe if the bank experiences any troubles.

Part of the Filipino banks’ plan is also to set up a multi-currency stablecoin exchange during launch that will be regulatory compliant to enable cross-border payments. Cross-border payments will require liquidity providers who can earn a yield since they will involve swaps of foreign currency stablecoins with PHPX.

Inderias said he anticipates larger cross-border payments for trade and the potential domestic use of the stablecoin at point of sale (POS). The CEO also maintained that the stablecoin’s goal will not be purely for remittances, and before that can even be considered, bank applications will have to go live first.

Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Nvidia stock sinks 4% as Trump’s tariff plans rattle AI tradeNvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
Author  NewsBTC
Apr 01, Tue
Nvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
placeholder
Bitcoin Price Bounces Back—Can It Finally Break Resistance?Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
Author  NewsBTC
Yesterday 03: 37
Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
placeholder
Bitcoin Price Struggling but Short-Term Holders Might Be Setting the Stage for $150KBitcoin has recently displayed signs of upward momentum, trading at $85,215, marking a 2.2% increase in just the past day. Despite this short-term gain, the asset remains down by over 21.2% from its
Author  NewsBTC
20 hours ago
Bitcoin has recently displayed signs of upward momentum, trading at $85,215, marking a 2.2% increase in just the past day. Despite this short-term gain, the asset remains down by over 21.2% from its
placeholder
U.S. March Nonfarm Payroll Preview: Even If Data Aligns with Expectations, Financial Markets May Not Escape the Fate of VolatilityOn 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
Author  TradingKey
20 hours ago
On 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
placeholder
Gold price stabilizes ahead of Trump's tariffs announcement on “Liberation Day”Gold price (XAU/USD) stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory.
Author  FXStreet
19 hours ago
Gold price (XAU/USD) stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory.
goTop
quote