BPI, a leading Philippine bank, has launched a pilot program using stablecoins for cross-border settlement. The initiative aims to cut costs and accelerate inbound income transfers for freelancers and virtual assistants. The bank is working with international clearing firm Meridian, which will process transactions overseas before BPI converts the funds to pesos. A wider rollout depends on coordination with the Bangko Sentral ng Pilipinas (BSP), including requirements for reserve transparency and consumer safeguards. The pilot is set to scale ahead of the 49th ASEAN Summit in November, where BPI plans to present the project.
BPI has launched a pilot program using stablecoin payments for cross-border settlement in the Philippines. The bank aims to speed up inbound transfers and reduce costs for freelancers and overseas income earners.
The Ayala-led bank is cooperating with international clearing firm Meridian for the new program. Transactions will be processed overseas before being converted to pesos.
Stablecoin payments will initially be used to pay foreign salaries and income. Recipients will receive the money converted to pesos and deposited into their BPI account.
BPI is scaling the pilot ahead of the 49th ASEAN Summit in November. The bank will present the project as a result of its digital banking development efforts.
This solution will not replace the existing banking system. Stablecoins will act as a settlement layer between sender and recipient.
Customers will not need to hold digital tokens. BPI will deposit Philippine pesos to the customer’s account after each transaction.
BPI CEO Jose Teodoro Limcaoco stated that the development was connected to the bank’s digitalization initiatives. He said recipients should receive overseas funds faster and at lower cost.
Meridian CEO Will Haering commented that stablecoin technology could work in an existing banking system. He claimed reliability and customer protection measures would remain in place.
According to BPI, the project will launch under the supervision of the Bangko Sentral ng Pilipinas. Further development depends on protection mechanisms, including consumer protection and transparent stablecoin reserve requirements.
In June, the BSP tightened regulations for licensed virtual asset service providers. As stated, due diligence would be conducted prior to listing any cryptocurrency on exchanges.
Under new guidelines, exchanges would investigate an issuer’s background and market maturity. Transparency, liquidity, and legal conformity would also be assessed.
In 2024, Coins.ph expanded the PHPC stablecoin to the Ronin blockchain. This stablecoin uses the Ethereum network and is one-to-one pegged to the Philippine peso, with cash and traditional instruments as reserves.
