Local lender Union Bank of the Philippines (UnionBank) successfully launched a stablecoin dubbed PHX.
In a statement, the Aboitiz-led bank said it transferred a tokenized fiat using its PHX peso stablecoin from OCBC Bank in Singapore to an account in Cantilan Bank in Surigao del Sur, through its i2i blockchain platform. The cross border blockchain remittance used the Adhara liquidity management and international payments platform.
UnionBank senior vice president and head of Fintech Business Group Arvie de Vera commented, “PHX is a stable store of value, medium of exchange and is a programmable token with self-executing logic.”
It enables transparent and automatic execution of payments.
A stablecoin is a cryptocurrency pegged to another stable asset such as gold or the Philippine peso.
He explained with UnionBank as the issuer for PHX, its value is bank-backed and guaranteed to be at parity with the Philippine peso at all times. Prior to the first-ever cryptocurrency remittance, UnionBank has also conducted successful live transactions.These transactions were executed by three rural bank participants on the i2i network, namely: Summit Rural Bank in Luzon, Progressive Bank in Visayas and Cantilan Bank in Mindanao.
As PHX is designed to be interoperable, in the future it may be used across various platforms and wallets, not just in the Philippines but globally as well.
Each of three rural banks performed buy, transfer and redemption transactions using PHX. The three banks were also able to conduct domestic remittances to one another using PHX.
As a start, PHX will be made available to i2i participants. They will be able to buy PHX on i2i by directly debiting from their UnionBank accounts. Participants will also be able to easily redeem PHX for Philippine Peso and have the funds credited to their UnionBank account.
As PHX is designed to be interoperable. In the future it may be used across various platforms and wallets, not just in the Philippines but globally as well. This has the potential to make transactions, payments and other use cases more accessible, efficient and inclusive.
UnionBank aims to fulfill its purpose of promoting inclusive prosperity and add value for customers and communities through innovative solutions in support of the Bangko Sentral ng Pilipinas’ digital financial inclusion advocacies and in compliance with all applicable regulations.