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UnionBank’s UBX to Introduce Peso Stablecoin on Polygon

Photo for the Article - UnionBank's UBX to Introduce Peso Stablecoin on Polygon
  • UBX, the digital arm of the Aboitiz Group, plans to develop a peso-based stablecoin on the Polygon PoS platform.
  • Leveraging Polygon’s blockchain technology, the stablecoin aims to revolutionize cost efficiency and transaction speed, addressing the significant role of remittances in the Philippine GDP.
  • UBX emphasizes the project’s potential to minimize settlement time, transaction fees, and intermediary reliance, streamlining remittances and enhancing financial inclusion across the country.

UBX, the digital arm of the Aboitiz Group, has revealed its plans to create a peso-based stablecoin on Polygon PoS. This initiative aims to optimize payments, specifically remittances, within the Philippines.

Read: An Overview of the Philippines’ Peso-Backed Stablecoins

UBX Stablecoin on Polygon

Photo for the Article - UnionBank's UBX to Introduce Peso Stablecoin on Polygon
John Januszczak, President and CEO, UBX

According to the media release, UBX will utilize the Polygon blockchain to develop a stablecoin for cost efficiency and faster transaction, particularly in cross-border exchanges. 

Remittances have a substantial role in the Philippine gross domestic product (GDP), evidenced by the $34.9 billion sent home by overseas Filipino workers in 2020, as per The World Bank.

John Januszczak, President and CEO of UBX, expressed optimism regarding the partnership, stating that it is a significant milestone in UBX’s journey to revolutionize the financial landscape of the country.

“By leveraging Polygon’s advanced blockchain technology, we aim to provide a seamless and secure platform for peso-denominated transactions, thereby enhancing financial inclusion across the country.”

John Januszczak, President and CEO, UBX
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Moreover, UBX highlighted that the project seeks to minimize settlement time, transaction fees, and intermediary reliance, particularly streamlining remittances for Filipinos and businesses. Additionally, it promises faster service for overseas Filipinos and the integration of additional digital financial services, ultimately fostering a more inclusive financial ecosystem and enhancing economic fortitude for families and communities.

“By combining UBX’s deep understanding of the Philippine financial market with Polygon’s blockchain expertise, we are poised to create a stablecoin solution that addresses the unique challenges faced by our country’s banking sector. We have exciting use cases that are waiting for this technology to be developed to solve some of the remittance sector’s biggest problems.”

William M. Valtos, Jr. Senior Managing Director, UBX

What are stablecoins?

Stablecoins are a type of digital currency that aims to keep its value steady, usually by being tied to a traditional currency like the US dollar. Unlike other cryptocurrencies that can change in value a lot, stablecoins try to stay the same to provide reliability for users. They’re used for things like trading, sending money, and online financial services.

Read: What are Stablecoins? An Introduction, Description, and Use Cases

Previous stablecoins by Aboitiz-backed firms

PHD

In 2022, UnionDigital Bank, the digital arm of UnionBank of the Philippines, announced that it was preparing to launch the Philippine Peso UnionDigital stablecoin (PHD). The then-CEO Arvie de Vera revealed this plan, stating that PHD will be backed by the Philippine peso and UnionDigital deposits. 

PHX

In 2019, the UnionBank of the Philippines introduced PHX, a stablecoin built on blockchain technology, to facilitate cross-border remittance transactions. This made UnionBank the first bank in the Philippines to issue a stablecoin and conduct remittances via blockchain. PHX was pegged to the Philippine Peso and is backed by UnionBank, ensuring a 1:1 parity between pesos and tokens. 

Approval from the Bangko Sentral ng Pilipinas (BSP) distinguishes PHX from other stablecoins and tokens, highlighting its stable value backed by trusted institutions. PHX will operate through UnionBank’s i2i blockchain platform, allowing interoperability with BSP-compliant platforms for cross-border transactions.

This article is published on BitPinas: Fintech Firm UBX to Introduce Pesos Stablecoin on Polygon

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