Philippines-Based UnionBank has Launched a New Stablecoin

The Philippines-based UnionBank has issued a stablecoin – PHX – and has already conducted a blockchain based transaction, PhilStar Global reported on July 26.

The new stablecoin is pegged to the Philippine peso, backed by reserves from UnionBank, and implemented on the bank’s i2i platform. I2i is a blockchain based clearing system which connects rural banks in the country to UnionBank and stands for island-to-island, institution-to-institution, and individual-to-individual. Arvie de Vera, UnionBank’s Senior Vice President, commented on the new stablecoin, saying:

“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.”

Initially PHX will be available to account holders who are participants in UnionBank’s i2i network, and will be purchasable with direct debit from their UnionBank accounts. The report also states that PHX was designed to be interoperable, and that it could be used across other global platforms and wallets. De Vera also stated that this stablecoin was created to ease audit and compliance issues, as well as to resolve reconciliation issues. He further added:

“Governance is assured by design. Reconciliation challenges of the past are no longer an issue. Meanwhile, audit and compliance are made easier.”

According to the report three rural banks have already successfully used PHX for transactions such as buy, transfer, redemption transactions and domestic remittances. The banks in question are the Summit Rural Bank in Luzon, Progressive Bank in Visayas and Cantilan Bank in Mindanao.

J.P. Morgan Chase, one of the largest U.S. banks, has also began client trials of its “JPM Stablecoin” last month, on its Quorum blockchain. This new cryptocurrency aims to speed up and improve intercompany remittance, and according to Umar Farooq, the bank’s Head of Blockchain Initiatives, customers from Europe, Japan, and the US have shown interest in it.

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