FINTECH | BPI pilots stablecoin remittance system
Stablecoins are digital tokens designed to maintain a stable value by being pegged to fiat currencies such as the U.S. dollar.
The Bank of the Philippine Islands (BPI) will pilot a stablecoin-based settlement system aimed at speeding up and lowering the cost of cross-border remittances, starting with payroll credits for freelancers, virtual assistants, and other workers in the informal economy.
The bank announced on July 23 that it is partnering with global digital clearinghouse Meridian to test digital asset-to-peso settlement rails, as financial institutions continue exploring blockchain-based technologies for international payments.
The pilot will initially serve Filipinos earning income from overseas, including overseas workers, freelancers, virtual assistants, and exporters. BPI said it plans a broader rollout for its clients ahead of the ASEAN Summit in November, subject to regulatory requirements.
Stablecoins are digital tokens designed to maintain a stable value by being pegged to fiat currencies such as the U.S. dollar. They are increasingly being used in cross-border payments to reduce transaction costs and settlement times. BPI said its initiative reflects its digital transformation strategy while maintaining regulatory compliance and consumer protection.
“Filipinos move billions of pesos every year, and it is our responsibility to make sure that their money arrives faster, cheaper, and just as securely as it does today. Exploring stablecoin rails is a natural extension of BPI’s digitalization strategy and customer focus,” said BPI President and CEO TG Limcaoco.
Meridian President and CEO Will Haering said the partnership demonstrates how stablecoin technology can be integrated into the banking system while maintaining security and regulatory safeguards.
BPI said the pilot will be conducted in coordination with the Bangko Sentral ng Pilipinas (BSP) and will adhere to existing regulatory frameworks. The bank added that consumer protection, reserve transparency, and regulatory compliance will remain priorities before any wider deployment.
Full disclosure: All news articles published on the TechSabado website are written by human journalists, unless otherwise specified. Final text editing is also performed by human editors, with artificial intelligence (AI) used only to assist with additional grammar and style guide corrections..
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