Several banks in the Philippines are collaborating to create a peso-backed stablecoin, PHPX, aimed at enhancing cross-border payments and financial inclusion.
PHPX Stablecoin Launch
The PHPX stablecoin, developed by Singapore-based startup Just Finance, will be launched on the Hedera decentralized ledger technology platform. The cryptocurrency is scheduled for release between May and July. Participating banks include UnionBank of the Philippines, Rizal Commercial Banking, Cantilan Bank, and Rural Bank of Guinobatan, who will have significant roles in governing the PHPX.
Role in Cross-Border Remittances
PHPX aims to extend beyond domestic transactions and offer real-time solutions for international transfers. UnionBank previously managed PHX, a cryptocurrency within a closed-loop system, but UBX seeks to create a token that is publicly exchangeable to support use cases outside its ecosystem. According to World Bank data, remittances account for a substantial part of the Philippine economy, with $40 billion sent by overseas workers in 2024.
Global Compliance and Future
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. The use of Hedera's network ensures compliance with the Basel Committee's low-risk crypto-asset requirements, and PHPX interactions will adhere to EU's Markets in Crypto-Assets Regulation standards or equivalent regional frameworks.
The PHPX project aims to strengthen the Philippine financial system by offering innovative solutions for cross-border transfers while ensuring global compliance standards.
