This stablecoin aims to take an innovative step forward in both cross-border transfers and financial inclusion using Hedera’s distributed ledger technology (DLT) and cross-border payment solutions. The PHPX token is planned to be released between May and July.

The PHPX stablecoin will be developed by Just Finance, a Singapore-based fintech startup, and will run on Hedera’s DLT network.

Participants include Philippine banks such as UnionBank of the Philippines, Rizal Commercial Banking, Cantilan Bank and Rural Bank of Guinobatan.

These banks will play an important role in the management of PHPX, ensuring the sustainability of the stablecoin.

UnionBank’s fintech unit, UBX, previously operated a quasi-stablecoin called PHX used in a closed-loop payment system. UBX CEO John Januszczak pointed out that PHPX should be designed as a public token so that it can be used outside the ecosystem.

According to World Bank data, the share of remittances sent by citizens working abroad in the Philippine economy is quite large. In 2024, this figure reached 40 billion dollars.

In this context, the PHPX stablecoin is being developed not only for local transactions but also to facilitate cross-border transfers. The project aims to accelerate remittance processes and expand usage areas by providing real-time payment solutions.

Regarding the project, John Januszczak said, “We want Filipinos working in the USA or another country to be able to pay their children’s school fees directly from abroad and for this payment to be made instantly.”

In line with this goal, it is planned to create a multi-currency stablecoin exchange so that PHPX can exchange with stablecoins such as the US dollar, Singapore dollar and Japanese yen. For these transformations, liquidity providers also need to be included in the system.

PHPX’s usage areas will not be limited to cross-border payments. Over time, the stablecoin could also be integrated into local retail and point-of-sale transactions. This expansion could contribute to increased financial inclusion in the Philippines.

Hedera’s permissioned network ensures PHPX’s compliance with the Basel Committee’s low-risk crypto asset requirements. At the same time, PHPX has been designed to comply with the standards of the European Union’s Crypto-Asset Markets Regulation (MiCA) or equivalent regional regulations.

This project presents a significant opportunity for the Philippine economy. Accelerating remittance processes and reducing costs in the Philippines can provide great convenience, especially for Filipinos working abroad. However, the expansion of PHPX’s potential uses could support the country’s development in financial technologies.

The project may not be limited to banks only. In the future, it is planned to include other qualified investors in this process to increase PHPX’s liquidity. This can both increase the sustainability of the stablecoin and support different use cases.

PHPX stablecoin promises to be a turning point in cross-border payments and financial inclusion in the Philippines. This evolving technology will not only facilitate remittance transactions but also support economic growth.