BPI to pilot stablecoin rail for faster peso remittances

• In Photo (L-R): BPI’s Alex Seminiano, Chief Technology Officer; TG Limcaoco, President and CEO; Meridian’s Will Haering, President and CEO; Janina Hillgruber, Global Head of Legal and Compliance.

The Bank of the Philippine Islands (BPI) is preparing to pilot a digital asset-to-peso remittance system that will use stablecoins to settle cross-border payments, initially targeting payroll credits for freelancers, virtual assistants, and other informal economy workers.

BPI announced on Thursday, July 23, that it is developing the settlement infrastructure in partnership with Meridian, a global digital clearinghouse.

The bank said the initiative aims to improve the speed and efficiency of transferring money into the Philippines by using stablecoins during the settlement process.

Stablecoins are digital tokens designed to maintain a relatively stable value, usually by being pegged to traditional currencies such as the United States dollar. They are increasingly being explored by financial technology companies and remittance providers as an alternative method of settling cross-border transactions.

Under the planned system, stablecoins would be used as part of the underlying settlement rail before funds are credited to recipients in Philippine pesos.

The pilot will initially cover payroll payments for workers in the informal economy, including freelancers and virtual assistants who receive income from clients abroad.

BPI said it plans to make the service available more broadly to its clients ahead of the ASEAN 49 summit in November.

“Filipinos move billions of pesos every year, and it is our responsibility to make sure that their money arrives faster, cheaper, and just as securely as it does today. Exploring stablecoin rails is a natural extension of BPI’s digitalization strategy and customer focus,” BPI President and Chief Executive Officer TG Limcaoco said.

Meridian President and Chief Executive Officer Will Haering said the partnership seeks to integrate the technology into the regulated banking system.

“BPI is showing what leadership looks like: taking a technology the world is adopting and making it work inside the banking system, safely, for the benefit of every client. We are proud to power it together,” Haering said.

BPI said the pilot will be conducted in close coordination with the Bangko Sentral ng Pilipinas and within existing regulatory frameworks.

The bank added that consumer protection, reserve transparency, and regulatory compliance will be prioritized before the service is rolled out more widely.