The Philipines’ UnionBank has issued its stablecoin, PHX, based on Filipino media outlet PhilStar Global. With the issuance, the bank additionally administered the first blockchain-based transaction by a Filipino bank.
The PHX stablecoin is pegged to the Philipino peso and backed by UnionBank reserves.
“PHX is a stable retailer of value, medium of change and is a programmable token with self-executing logic. It allows transparent and automated execution of payments,” said UnionBank Senior Vice President Arvie de Vera.
UnionBank’s blockchain transaction occurred on its i2i payment system which connects islands, institutions, and people, per PhilStar. Three rural banks took part within the inaugural transfer.
PHX is available to all UnionBank account holders and purchasable through debits to account holders. In the long run, UnionBank plans on making PHX and i2i interoperable platforms throughout wallets and platforms in the Philippines and abroad.
The stablecoin and i2i system are hardly child steps for UnionBank, which has maintained a rising interest in digital property. In February 2019, the bank launched the first two-way virtual currency ATM, primarily to address remittance service demand.
Payment companies proceed to set the pace for bank growth of the digital property. Financial big J.P. Morgan launched its payment rail, JPM Coin, on its Quorum blockchain earlier this year. World settlement network SWIFT has also upped settlement time just lately in a bid to counter alternative services like Ripple.
Some 10 million Filipinos dwell overseas creating an excellent demand for remittance services. In April, Coins.ph inked a take care of Western Union for direct settlement into Coin.ph wallets. Over the last few years, remittance services have grown three % yearly in the island country.