BPI tests stablecoin settlement for overseas Filipino workers

The bank said the pilot will proceed in coordination with the Bangko Sentral ng Pilipinas. Any future expansion depends on regulatory safeguards, including consumer protection measures and transparency around stablecoin reserves.

In June, the BSP introduced stricter requirements for licensed virtual asset service providers. Exchanges must assess issuer background, market maturity, transparency, liquidity, legal compliance, and use cases before listing cryptocurrencies. The central bank also issued guidance on fiat-backed and asset-backed stablecoins, requiring providers to examine reserve composition, redemption rights, issuance and burning mechanisms, and the quality of backing assets.

Separately, the Philippine Securities and Exchange Commission has used its Strategic Regulatory Sandbox to test digital asset products. Commissioner Rogelio Quevedo said the country's existing legal framework could accommodate tokenized assets. Four companies have entered the sandbox, including a tokenized real estate project and firms testing investment products linked to U.S. equities. BlockShoals Technologies received approval to test crypto-related services with Binance as its global partner. The BSP later clarified that neither BlockShoals nor Binance holds a Philippine VASP license and said sandbox participation does not replace separate licensing requirements.

In 2024, Philippine exchange Coins.ph expanded its peso-backed PHPC stablecoin to the Ronin blockchain, allowing users to move funds and spend gaming earnings. The Ethereum-based stablecoin is backed one-to-one by the Philippine peso, with reserves in cash and traditional instruments.

For BPI, the pilot targets a different segment by focusing on cross-border settlements handled through the banking system rather than blockchain-native payments. If the trial proceeds as planned, the project could provide overseas workers with a faster settlement process while keeping transactions within the country's regulated banking framework.

Any broader deployment will remain subject to coordination with the BSP and compliance with regulatory requirements covering consumer protection, reserve transparency, and other safeguards outlined for stablecoin-based financial services.