Bank of the Philippine Islands (BPI) is set to pilot a stablecoin-based settlement rail designed to modernize cross-border remittances, starting with payroll credits for freelancers, virtual assistants, and other informal economy workers.
The initiative, developed in partnership with global digital clearinghouse Meridian, aims to improve the speed and efficiency of international money transfers while maintaining regulatory compliance and customer protection.
Faster and more efficient remittances
Stablecoins are digital tokens that maintain a stable value by being pegged to fiat currencies, such as the US dollar. They are increasingly being adopted by fintech firms and remittance providers to reduce transfer costs and settlement times.
BPI said the pilot will initially focus on payroll credits for workers in the informal economy, including freelancers and virtual assistants. The bank plans to expand the service to more clients ahead of the ASEAN 49 Summit in November.
The initiative is expected to benefit millions of Filipinos earning income from overseas, including overseas Filipino workers (OFWs), exporters, freelancers, and remote professionals, by reducing both transaction costs and waiting times for receiving dollar-denominated earnings.
Part of BPI’s digitalization strategy
According to BPI President and CEO TG Limcaoco, the project aligns with the bank’s broader digital transformation efforts.
“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,” Limcaoco said.
Meridian President and CEO Will Haering added that the collaboration demonstrates how stablecoin technology can be integrated into traditional banking infrastructure while maintaining safety and regulatory standards.
Regulatory compliance remains a priority
BPI emphasized that the pilot will be conducted in close coordination with the Bangko Sentral ng Pilipinas and within existing regulatory frameworks.
The bank said consumer protection, reserve transparency, and full regulatory compliance will remain key priorities before any wider rollout of the stablecoin settlement service.
