The Bank of the Philippine Islands (BPI) is launching a pilot program to test stablecoin settlement infrastructure for cross-border remittances, aiming to accelerate transfer speeds and reduce costs for Filipinos receiving foreign currency.

The initiative initially targets payroll credits for informal economy workers—such as overseas workers, freelancers, virtual assistants, and exporters—who often face delayed settlement times and high transaction fees when receiving foreign income.

To build the payment rail, BPI is partnering with Meridian, a global digital clearinghouse specializing in digital asset settlement. The system will convert digital assets directly into Philippine pesos, integrating blockchain-based clearing mechanisms directly into mainstream banking architecture.

Stablecoins—digital tokens designed to track fiat currencies like the U.S. dollar—are increasingly utilized by financial technology firms to eliminate intermediaries in traditional wire transfers. By routing transactions through stablecoin rails, BPI aims to shorten the processing window for U.S. dollar inflows down to near-real-time execution.

Following the initial pilot focused on informal payrolls, BPI plans to expand the service across its wider client base ahead of the 49th ASEAN 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, BPI President and CEO.

“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 CEO of Meridian.

Key operational focus areas for the initiative include:

• Target Audience: Freelancers, virtual assistants, overseas Filipino workers, and small-scale exporters receiving international payments.
• Core Technology: Meridian-powered digital asset-to-peso clearing rails utilizing dollar-pegged stablecoins.
• Rollout Timeline: Initial testing on informal payroll credits, followed by a broader client deployment prior to November.
• Risk Management: Strict oversight protocols emphasizing consumer protection, reserve transparency, and regulatory compliance.

BPI stated that the pilot is being conducted in close coordination with the Bangko Sentral ng Pilipinas (BSP), operating strictly within existing regulatory frameworks governing digital assets and cross-border remittances.