Bank of the Philippine Islands, one of the country’s largest commercial banks, has begun a trial using stablecoins for international payment settlements. The initiative focuses on streamlining remittance and payroll disbursements for Filipinos receiving income from abroad, including overseas workers and freelancers.
Stablecoin-based settlement for remittances
The program uses stablecoins as an intermediary step to transfer funds, converting them to Philippine pesos before crediting the recipient’s BPI account using the existing banking infrastructure. BPI collaborates with Meridian, a blockchain settlement technology company, to operate the regulated pilot.
According to BPI, this approach seeks to lower transfer costs and deliver funds more quickly compared to traditional correspondent banking networks. The bank reported that the trial will initially serve payroll payments and other income sent by Filipinos working overseas, including virtual assistants and freelance professionals.
BPI aims to accelerate international payments while maintaining the reliability and protections of traditional banking channels, leveraging blockchain technology for efficiency.
The pilot is scheduled to begin in July and will gradually expand throughout the year. BPI targets full implementation ahead of the ASEAN Summit scheduled for November 2026, to showcase compliant blockchain settlement solutions in the banking sector.
Central bank oversight and compliance
Bangko Sentral ng Pilipinas (BSP), the central banking authority, supervises the trial under current digital asset regulations. The BSP requires consumer protection measures, transparency in reserve disclosures, and ongoing compliance protocols from participants. As the project expands, BPI must secure continued regulatory approvals.
The central bank recently updated its registration standards for virtual asset service providers, enforcing transparency, strict liquidity management, legal compliance, and secure redemption frameworks. All such trials must meet these criteria before broader rollouts.
The Philippine Securities and Exchange Commission has also advanced its Strategic Regulatory Sandbox, allowing licensed entities to test tokenized financial products under regulatory supervision. Sandbox participation, however, does not exempt companies from meeting formal licensing requirements set by the BSP.
Mini dictionary: Meridian is a financial technology company specializing in blockchain-powered settlement infrastructure, providing systems for regulated digital asset payments across borders.
Philippines as a major remittance destination
As one of the world’s leading remittance destinations, the Philippines receives nearly $40 billion annually through money sent home by overseas workers and freelancers. Traditional payment channels often result in delays and high costs for these recipients, prompting banks like BPI to explore blockchain-based alternatives that maintain customer trust and regulatory compliance.
| Remittance Channel | Settlement Speed | Cost | Regulatory Oversight |
|---|---|---|---|
| Traditional bank wire | 2–5 days | High | BSP-regulated |
| Stablecoin trial (BPI) | Potentially same day | Lowered | BSP-regulated, under pilot |
Other companies in the Philippines are also exploring stablecoin use. Coins.ph, another financial platform, launched the PHPC, a peso-pegged stablecoin, on the Ronin blockchain network in 2024 to enable blockchain-native transfers. Unlike these digital-only products, BPI’s trial aims for fully regulated settlements directly into traditional bank accounts.
BPI’s strategy integrates stablecoins as a behind-the-scenes payment instrument within established banking processes rather than a crypto retail service. Funds are processed over blockchain rails for settlement, then converted seamlessly to pesos and deposited to bank accounts, ensuring both efficiency and customer protection under BSP rules.
BPI emphasizes that integrating stablecoins into its banking processes allows for faster international transfers without compromising regulatory standards or consumer safety.
