The Bank of the Philippine Islands (BPI) is preparing to launch stablecoin settlement rails designed to modernize how money moves into the Philippines, with an initial focus on payroll credits for informal economy workers, including freelancers and virtual assistants.
The initiative is being developed in partnership with Meridian, a global digital clearinghouse. It will introduce stablecoin-based settlement infrastructure intended to improve the speed and efficiency of cross-border payment flows. The project builds on the growing use of digital assets in international payments while keeping regulatory compliance and customer protection as central priorities.
How stablecoin settlement works
Stablecoins are digital tokens designed to maintain a stable value, typically by being pegged to a fiat currency such as the US dollar.
Fintech companies and remittance providers have increasingly explored stablecoins as a way to reduce the cost and settlement time of cross-border transfers.
BPI said its exploration of the technology forms part of its broader digitalization strategy. The bank plans to work with established technology partners while maintaining regulatory compliance, consumer protection, and secure settlement processes.
Supporting Filipinos who earn from abroad
The stablecoin rail is intended to benefit Filipinos who receive income from overseas, including migrant workers, freelancers, virtual assistants, and exporters. According to BPI, the system could reduce both the cost and waiting time involved in receiving dollar-denominated income and converting it into Philippine pesos.
The pilot will initially cover payroll credits for workers in the informal economy. BPI 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,” said TG Limcaoco, president and chief executive officer of BPI.
Partnership with Meridian
Meridian will provide the digital clearing infrastructure supporting the pilot.
“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,” said Will Haering, president and chief executive officer of Meridian.
The initiative reflects how traditional banks are beginning to explore blockchain-based settlement infrastructure while keeping the customer-facing transaction within the regulated banking system.
Regulatory coordination and consumer protection
BPI said the pilot will be conducted in close coordination with the Bangko Sentral ng Pilipinas and in line with existing regulatory frameworks. The bank emphasized that consumer protection, reserve transparency, and full regulatory compliance will remain priorities before any broader rollout.
These safeguards are particularly important in stablecoin-based systems, where the reliability of the underlying reserves and the integrity of the settlement process directly affect users.
In Summary
BPI is working with Meridian to pilot a stablecoin-based settlement rail that will convert cross-border digital asset payments into Philippine pesos. The first phase will focus on payroll credits for freelancers, virtual assistants, and other informal economy workers, with a broader rollout planned for BPI clients. The bank said the project will be coordinated with the Bangko Sentral ng Pilipinas and will prioritize consumer protection, reserve transparency, and regulatory compliance.