The Bank of the Philippine Islands (BPI) has initiated a stablecoin-based settlement pilot aimed at transforming its cross‑border payment processing. The project, launched in July 2026, targets faster payroll and remittance settlements for freelancers, virtual assistants, and overseas Filipino workers who regularly receive international income. BPI will test the service in collaboration with settlement infrastructure provider Meridian, under the close supervision of the Bangko Sentral ng Pilipinas (BSP).
The system uses stablecoins as a settlement layer before funds are converted into Philippine pesos and credited directly to recipients’ BPI accounts through existing banking channels. By reducing transfer costs and shortening settlement times compared to traditional correspondent banking, BPI hopes to improve efficiency without altering customer banking practices. The pilot initially supports payroll credits and other overseas earnings, with a broader rollout planned before the 49th ASEAN Summit in November 2026.
Regulatory safeguards are central to the initiative. The BSP will oversee the pilot under current digital asset rules, requiring reserve transparency, consumer protection, and compliance standards. This follows updated virtual asset regulations in June 2026, which strengthened listing requirements for licensed virtual asset service providers, and the SEC’s expansion of its Strategic Regulatory Sandbox for tokenized financial products. However, BSP approval remains mandatory for any wider deployment.
The Philippines is one of the world’s largest remittance markets, with annual inflows approaching $40 billion. BPI’s move builds on growing local stablecoin adoption, such as Coins.ph’s peso‑backed PHPC stablecoin on the Ronin blockchain, but differs by integrating blockchain settlements directly into traditional banking flows. The bank aims to offer speed and cost benefits while maintaining full regulatory compliance.
