Bank of the Philippine Islands, Southeast Asia's oldest bank, is launching a stablecoin settlement pilot. The goal: cut costs and speed up remittances for the millions of Filipino workers abroad. The pilot will be run in partnership with Meridian, a blockchain-based payments firm.
Why remittances are the target
Filipino overseas workers send home roughly $40 billion each year. That's a huge flow of money, but traditional bank transfers and money transfer operators take a cut and can be slow. BPI wants to see if a stablecoin — a digital token pegged to a fiat currency — can make the process cheaper and near-instant. The pilot will test settlement between BPI and partner institutions using a stablecoin, likely pegged to the Philippine peso or a major currency like the US dollar.
How the pilot will work
Meridian, the technology partner, provides the infrastructure for issuing and redeeming the stablecoin. BPI will handle the on-ramp and off-ramp for customers — meaning the bank will convert pesos into stablecoins and back. The pilot is limited in scope, but if it works, BPI could expand it to more corridors. The bank hasn't said which specific stablecoin or blockchain will be used, nor when the pilot will start or end.
What's at stake for the industry
Remittances are a lifeline for many Philippine families. Faster, cheaper transfers could mean more money in their pockets. But stablecoins come with regulatory questions. The Bangko Sentral ng Pilipinas has been cautious about digital assets, though it has licensed some crypto exchanges. BPI's pilot could be a test case for how traditional banks can adopt blockchain without running afoul of rules. No timeline for a full rollout has been announced.
