Philippines-based UnionBank has launched its own stablecoin PHX pegged to the Philippine peso and backed by UnionBank reserves. The launch of its stablecoin is the first blockchain-based transaction executed by a Filipino bank.
Per the report, the PHX stablecoin is currently being implemented on UnionBank’s i2i payment system. The i2i acronym represents island-to-island, institution-to-institution, and individual-to-individual. It is a blockchain-based system targeted at connecting UnionBank to other rural banks in the state.
Speaking on the launch, the senior vice-president of UnionBank, Arvie de Vera, said: “PHX is a stable store of value, medium of exchange and is a programmable token with self-executing logic. It enables transparent and automatic execution of payments.”
In addition, the report noted that PHX will be made available to every customer that holds an account with UnionBank and will be able to purchase PHX stablecoin directly through debit from their UnionBank accounts. The bank is also nursing plans to make PHX stablecoin and the i2i payment system available on other wallets and platforms across the Philippines and abroad.
De Vera also disclosed that PHX will help resolve reconciliation issues and help improve audit and compliances issues.
The PHX stablecoin was launched in support of the Bangko Sentral ng Pilipinas’ bid to ensure that people and communities have access to digital financial services.
Apart from the stablecoin and i2i payment system, UnionBank had also in February 2019, launched its first two-way virtual currency ATM, which was aimed at catering for the growing demand for remittance service.