The Bank of the Philippine Islands (BPI) has announced plans to launch a pilot program using stablecoins to facilitate cross-border settlements for freelancers, virtual assistants, and other workers receiving income from overseas. BPI, a leading financial institution in the Philippines, is collaborating with Meridian, a digital clearinghouse specializing in payment solutions, to develop this settlement rail.
Pilot targets overseas workers and digital services
The proposed system aims to streamline inbound remittances by utilizing stablecoins as an initial settlement tool. After the stablecoin transfer, funds will be converted into Philippine pesos and deposited directly into BPI customer accounts.
The bank intends for the solution to lower both the cost and processing time for international payroll and remittance payments. Existing safeguards from traditional banking will be retained within the new system to ensure continued financial security.
BPI President and CEO Jose Teodoro Limcaoco emphasized that the stablecoin initiative fits naturally within the bank’s ongoing digital transformation efforts. He highlighted BPI’s goal to make funds “arrive faster and more cheaply without compromising security.”
For the initial pilot, BPI will concentrate on payroll remittances and income generated abroad, a sector that includes a significant portion of the Filipino workforce such as freelancers and service providers working with overseas clients.
Regulatory compliance and future roadmap
BPI will coordinate closely with the Bangko Sentral ng Pilipinas, the central bank of the Philippines, to maintain compliance with local regulations. The pilot is positioned as a precursor to a broader rollout, potentially coinciding with the 49th ASEAN Summit scheduled for November.
The bank stated that expanding the system beyond the pilot phase will rely on factors such as consumer protection frameworks, transparent reserve management for the stablecoin involved, and the successful implementation of regulatory safeguards.
Stablecoins are digital tokens pegged to stable assets—often fiat currencies like the US dollar—which are designed to minimize price volatility and facilitate efficient on-chain settlement.
Mini dictionary: Meridian, a global digital clearinghouse, specializes in developing and operating financial infrastructure to enable secure and efficient digital payments and settlements.
Broader context in Philippine financial innovation
The pilot comes as Philippine regulatory authorities express growing openness to blockchain-based financial tools and tokenization of real-world assets. The Securities and Exchange Commission has indicated its readiness to review and regulate new digital asset structures, highlighting a broader shift toward digital finance within the country.
BPI’s exploration of stablecoin rails reflects a larger industry movement to modernize payment systems, increase efficiency in cross-border settlements, and provide improved financial access for remote workers supporting the Philippine economy.
