Philippines-based UnionBank has launched a payments-focused stablecoin called PHX pegged to the Philippine peso using UnionBank reserves, according to a report by PhilStar Global. According to a report by Coindesk, this marks the first blockchain-based transaction in the country.
The newly introduced cryptocurrency PHX is being implemented on UnionBank’s i2i platform, which according to Philstar, stands for “island-to-island, institution-to-institution, and individual-to-individual.” The i2i platform serves as the blockchain-based clearing system that connects UnionBank to rural banks in the country.
According to Arvie de Vera, Senior Vice President of UnionBank, the PHX stablecoin is designed to function as “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.”
Transactions on the i2i payment platform have already been carried out successfully by three rural banks.
UnionBank account holders can now purchase PHX via debits. As the stablecoin is designed to be interoperable, it may be traded across various platforms and wallets in the future, both domestically and globally. This allows for efficient, inclusive transactions and payments, in keeping with the government’s mandate for the sustainable promotion of financial inclusion for all Philippine banks.
UnionBank has also used blockchain-based tokenized fiat to successfully remit funds from OCBC Bank in Singapore to an account holder at Cantilan Bank.
The stablecoin and i2i platform were the results of UnionBank’s blockchain development. Earlier this year, the bank also launched two-way digital asset ATMs to offer remittance services in response to the increasing demand.
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