Philippine Banks to Launch PHPX Stablecoin

Philippine banks are launching PHPX stablecoin on Hedera blockchain to improve cross-border payments and remittances.

Several banks in the Philippines are planning to launch a new stablecoin called PHPX. Cross-border payments will be easy through these stablecoins. First, it will launch on Hedera’s Distributed Ledger Technology (DLT) network. Rizal Commercial Banking, the Rural Bank of Guinobatan, Cantilan Bank, and UnionBank are the banks involved. The project is being run by a startup called Just Finance from Singapore, but the banks will play a major part in running it.

Cryptocurrency developer PHPX seeks to improve cross-border payments as one of its main goals. Other stablecoins, USD, SGD, and JPY, will be exchanged for the stablecoin. It will develop a stable multi-currency basis for exchange. These exchanges will need liquidity providers to help with them. By offering liquidity, they can earn a yield. At first, the role will be taken on by the banks, but others may join in the future.

For several years, UnionBank’s fintech arm, UBX, has used blockchain technology. In 2018, UBX first went into the market with a token-based payment system for rural banks. A version of Ethereum was used for this system. The token in that system is PHX, but not PHPX. It’s time to have a public stablecoin, it can be exchanged over any public exchange, and we are seeing that demand for it globally, UBX CEO John Januszczak said. As such, it will prove useful for several purposes other than UnionBank’s system.

PHPX Stablecoin to Improve Remittances for Filipinos

PHPX is a key use case for remittances as well. Filipinos work abroad and send money home. The Philippines received $40 billion in remittances in 2024. However, it takes time and it’s also costly to send the money. With PHPX these payments will be made faster and cheaper. From sending money to pay bills, school fees, or even finance insurance or investment products, Filipinos can do it all.

Although remittances are the main focus, the PHPX could also be used for payments of a larger size, i.e. international trade. But it will be the central bank of the Philippines that decides when the stablecoin goes live. The project is slated to launch between May and July 2025.

The central bank also recently finished testing a wholesale central bank digital currency (CBDC). Project Agila seeks to improve interbank payments and financial stability. Moreover, the future of digital payments in the Philippines could involve this CBDC.

On top of these, PHPX and the CBDC are both essential strides in alleviating the Philippine payments. The CBDC will improve the financial system, while PHPX will allow for faster cross-border payment.