BPI to pilot stablecoin rails for cross-border payroll

MANILA, Philippines — The Bank of the Philippine Islands (BPI) is testing a faster and cheaper way to send money into the country using stablecoin-based settlement rails to streamline cross-border payroll for freelancers and other workers paid from abroad.

Stablecoins are digital tokens designed to maintain a stable value, typically pegged to a fiat currency such as the US dollar. They have been increasingly adopted by fintech firms and remittance providers to streamline cross-border transactions by reducing intermediaries and settlement delays.

The initiative, undertaken with global digital clearinghouse Meridian, aims to cut both the cost and settlement time of dollar inflows, a key pain point for millions of Filipinos earning from abroad.

The service will first be applied to payroll disbursements before expanding to a broader client base ahead of the ASEAN summit in November.

BPI said the pilot forms part of its broader digitalization push, as it explores emerging technologies that could improve the efficiency of financial flows while maintaining safeguards. The bank emphasized that the rollout will be coordinated closely with the Bangko Sentral ng Pilipinas (BSP) and aligned with existing regulatory frameworks.

“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,” BPI president and CEO TG Limcaoco said.

For workers such as overseas Filipinos, freelancers and exporters, BPI said the new rails could significantly shorten waiting times for dollar earnings while lowering fees associated with currency conversion and transfer processing.

Meridian president and CEO Will Haering said the partnership reflects how traditional banks can integrate new technologies within regulated systems.

“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,” he said.

BPI said that consumer protection and regulatory compliance will be central to the pilot. The bank said it would prioritize reserve transparency and safeguards as it tests the infrastructure before any broader rollout.

The BSP has been studying digital asset applications alongside its own initiatives, including wholesale central bank digital currency experiments, as part of efforts to modernize the country’s payment systems.