Philippine bank launches stablecoin settlement pilot

The Bank of the Philippine Islands (BPI) is preparing to pilot stablecoin-based settlement rails for cross-border payroll payments in partnership with digital clearinghouse Meridian.

The initial phase will target Filipino freelancers, virtual assistants and other workers who receive income from abroad. BPI said the system was intended to reduce the cost and processing time of dollar-denominated payments entering the Philippines.

Payroll credits will be tested first, with the bank planning to make the service available to a broader group of clients ahead of the ASEAN summit in November. Any expansion will depend on the results of the pilot and applicable regulatory requirements.

BPI described the initiative as part of its wider digitalisation strategy and said stablecoin settlement could make cross-border transfers faster and cheaper while retaining the safeguards used in the conventional banking system.

The bank said it would coordinate the project with the Bangko Sentral ng Pilipinas and operate within existing regulatory frameworks. Consumer protection, regulatory compliance and transparency over stablecoin reserves will be priorities before any broader rollout, according to BPI.

Technical details, including which stablecoin, blockchain network and reserve structure will be used, have not been disclosed.

Why does it matter?

The pilot shows how a regulated bank could use stablecoins as part of the underlying infrastructure for cross-border payments rather than as a consumer trading product. Such systems could be particularly relevant in the Philippines, where freelancers, overseas workers and businesses regularly receive income from abroad.

Its practical significance will depend on whether BPI can demonstrate lower costs and faster processing after currency conversion, while maintaining effective reserve, redemption and consumer-protection safeguards.

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