Philippine banks collaborate to launch PHPX stablecoin on Hedera

Several banks in the Philippines are working together to create a peso-backed stablecoin, PHPX, aimed at improving cross-border payments and financial inclusion. The PHPX token is scheduled to launch between May and July.

The PHPX stablecoin, developed by Singapore-based startup Just Finance, will be launched on the Hedera decentralized ledger technology (DLT) network. 

Participating Philippine banks include UnionBank of the Philippines, Rizal Commercial Banking, Cantilan Bank and Rural Bank of Guinobatan, according to a Ledger Insights report. All participants will play a significant role in the governance of the PHPX stablecoin.

Banks aim to revamp cross-border remittance with PHPX stablecoin

UnionBank, through its fintech arm UBX, previously managed PHX, a quasi-stablecoin within a closed-loop payment system. UBX CEO John Januszczak highlighted the need to create a token that is “publicly exchangeable to support use cases outside our ecosystem.”

Remittances account for a substantial part of the Philippine economy, with $40 billion sent by overseas workers in 2024, according to World Bank data. 

Top recipients of remittances among low- and middle-income countries in % of GDP, 2024e. Source: World Bank

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PHPX aims to go beyond domestic transactions and streamline cross-border transfers by offering real-time payment solutions and expanding use cases beyond basic remittances.

We want Filipinos that are earning money in the US (or elsewhere) to be able to pay their kids’ school tuition directly from the United States (and) for that payment to be effected in real-time,” Januszczak said.

Enabling remittances through global compliance

To enable cross-border transactions, the initiative includes plans for a multicurrency stablecoin exchange, requiring liquidity providers for swaps between PHPX and stablecoins in US dollars, Singapore dollars and Japanese yen.

In addition to the banking partners, other qualified investors may be incorporated to manage the liquidity of the PHPX stablecoin, depending on the market demand in the future. The token may expand into domestic retail and point-of-sale transactions.

The use of Hedera’s permissioned network ensures compliance with the Basel Committee’s low-risk crypto-asset requirements, and PHPX’s interactions will adhere to EU’s Markets in Crypto-Assets Regulation standards or equivalent regional frameworks.

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