KEY FACT: Filipino banks, including UnionBank, RCBC, Cantilan Bank, and Rural Bank of Guinobatan, are collaborating to launch PHPX, a peso-backed stablecoin, on the Hedera decentralized ledger network by mid-2025. Just Finance spearheads the launch, PHPX aims to streamline cross-border transactions, particularly for overseas Filipino workers remitting funds back home, enabling real-time payments for services like tuition fees. The stablecoin will also support a multicurrency exchange for swaps with USD, SGD, and JPY stablecoins, with plans to expand its utility to retail transactions. Operating on a permissioned network, PHPX ensures compliance with international regulations, such as Basel and MiCA standards.
Source: ledgerinsights.
Philippine Banks collaborate to Launch PHPX Stablecoin on Hedera DLT
Several Philippine banks are collaborating to introduce a peso-backed stablecoin, PHPX, to enhance financial inclusion and streamline cross-border transactions. This initiative, spearheaded by Singapore-based startup Just Finance, is set to launch between May and July 2025 on the Hedera decentralized ledger technology (DLT) network.
The consortium includes prominent financial institutions such as UnionBank of the Philippines, Rizal Commercial Banking Corporation (RCBC), Cantilan Bank, and Rural Bank of Guinobatan. Each bank will play a pivotal role in the governance and implementation of the PHPX stablecoin, ensuring its integration into the existing financial ecosystem.
UnionBank, through its fintech subsidiary UBX, previously managed PHX, a quasi-stablecoin utilized within a closed-loop payment system. UBX CEO John Januszczak emphasized the necessity for a token that is "publicly exchangeable to support use cases outside our ecosystem," highlighting the broader applicability envisioned for PHPX.
As a justification for this development, remittances constitute a substantial component of the Philippine economy. According to World Bank data, overseas Filipino workers remitted approximately $40 billion in 2024, underscoring the critical need for efficient and cost-effective cross-border payment solutions.
PHPX will cover domestic transactions by facilitating real-time cross-border payments. The stablecoin is designed to enable overseas Filipinos to pay for services such as tuition fees in the Philippines directly from abroad, with transactions processed instantaneously. Januszczak articulated this vision, stating,
"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."
To support cross-border transactions, the initiative plans to establish a multicurrency stablecoin exchange. This platform will facilitate liquidity providers in managing swaps between PHPX and other stablecoins denominated in US dollars, Singapore dollars, and Japanese yen. The inclusion of additional qualified investors to manage PHPX's liquidity is anticipated, contingent on market demand. Furthermore, there are prospects for PHPX's expansion into domestic retail and point-of-sale transactions, broadening its utility within the local economy.
The stablecoin will leverage Hedera's permissioned network to ensure that PHPX complies with international regulatory standards. The stablecoin's operations will adhere to the Basel Committee's low-risk crypto-asset requirements and align with the European Union's Markets in Crypto-Assets Regulation (MiCA) standards or equivalent regional frameworks. This compliance framework is crucial for fostering trust and ensuring the stablecoin's acceptance within the global financial system.
The introduction of PHPX has great implications for the Philippine financial sector. Harnessing advanced DLT and stablecoin technology will help the participating banks enhance the efficiency of remittance services, reduce transaction costs, and promote financial inclusion. As the launch date approaches, stakeholders and potential users eagerly anticipate the operationalization of PHPX and its impact on both domestic and international financial transactions involving the Philippine peso.
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