Coins.ph launches regulated stablecoin in the Philippines

Importantly, PHPC’s launch has the potential to revolutionize cross-border payments in the Philippines which is the world’s fourth-largest recipient of remittances, with approximately $40 billion sent home annually by a diaspora of 16 million Filipinos. Traditional remittance channels are often slow, costly, and require multiple intermediaries, resulting in significant fees and delays. PHPC offers a compelling alternative: by leveraging blockchain technology, it enables near-instant transfers at a fraction of the cost—transaction fees can be reduced to as little as 0.1–0.3%. This efficiency is particularly beneficial in a country where only 56% of the population has a bank account, and alternative financial services such as pawnshops remain critical for reaching the underbanked. With PHPC, Filipinos abroad can send funds directly to recipients’ digital wallets, bypassing traditional banking infrastructure and enabling recipients to access their money immediately.

The stablecoin’s utility extends well beyond remittances. For domestic payments, PHPC can be integrated into merchant point-of-sale systems, allowing businesses to accept digital peso payments with minimal fees and instant settlement. This is especially valuable for micro, small, and medium enterprises (MSMEs), which often face high costs and long settlement times with legacy payment processors. By providing a stable, digital alternative, PHPC can help drive financial inclusion, empowering millions who lack access to conventional banking services to participate in the digital economy with just a smartphone and an internet connection.

PHPC’s integration with blockchain networks, such as Polygon, enhances its scalability and transaction speed. The use of a Layer 2 solution ensures high throughput and low transaction costs, making PHPC suitable for a wide range of applications, from peer-to-peer transfers to online commerce and even integration with blockchain-based gaming platforms. This technological foundation supports the stablecoin’s ambition to become a ubiquitous digital payment method in the Philippines and potentially across Southeast Asia.

Security and transparency are central to PHPC’s architecture. The reserves backing the stablecoin are subject to regular third-party audits and are reported to the BSP, ensuring that each PHPC in circulation is fully collateralized. This level of oversight is essential for building trust among users and distinguishing PHPC from unregulated or algorithmic stablecoins that have failed in other markets due to inadequate reserves or poor governance. Coins.ph’s commitment to ongoing compliance, public disclosures, and smart contract security checks further reinforces the stablecoin’s credibility.

However, the launch of PHPC is not without challenges. Counterparty risk persists, as the stability of the coin depends on the solvency of the banks holding the reserves. Regulatory compliance and regular audits will be crucial to mitigating these risks and maintaining user confidence. Additionally, competition in the peso-backed stablecoin space is intensifying, with other projects such as PHPX emerging from collaborations between local banks and fintech firms. This competitive landscape may drive further innovation but also necessitates clear standards and interoperability.

By offering a stable, regulated, and efficient digital currency, PHPC has the potential to lower remittance costs, enhance financial inclusion, and support a host of new use cases in commerce, payments, and beyond. Its ultimate impact will depend on continued regulatory vigilance, robust technological infrastructure, and the ability to scale while maintaining trust and security.