BPI to Pilot Stablecoin Rail for Cross-Border Payroll

The Bank of the Philippine Islands will pilot a stablecoin-based settlement rail developed with global clearinghouse Meridian to process cross-border payroll and other overseas earnings. Stablecoins will serve as a temporary settlement instrument before funds are converted to Philippine pesos and credited to recipients’ BPI accounts.

The pilot targets freelancers, virtual assistants and other workers who receive small, frequent payments from abroad. The bank intends the rail to shorten processing times and lower fees compared with correspondent banking routes while keeping standard banking controls in place.

BPI President and CEO Jose Teodoro Limcaoco described the exploration of stablecoin rails as ‘a natural extension of the bank’s digitalization strategy’ and added the goal is to ‘make funds arrive faster and more cheaply without compromising security.’

Under the proposed flow, inbound payments will be settled on the rail using stablecoins, converted into pesos at BPI, and then credited to beneficiaries’ accounts. BPI noted that conversion and crediting will retain existing verification and customer-protection measures built into its systems.

The pilot will test operational and compliance aspects, including liquidity management, counterparty risk and settlement finality. The bank plans a broader rollout ahead of the 49th ASEAN Summit in November if pilot results and regulatory conditions allow.

BPI will coordinate with the Bangko Sentral ng Pilipinas during the pilot. Any expansion beyond the test will depend on regulatory requirements such as consumer protection rules, transparency about stablecoin reserve backing and other safeguards.

Stablecoins have attracted regulatory scrutiny because their value depends on backing reserves and because faster settlement rails can outpace compliance checks if controls are not included. The pilot will include identity verification and anti-money-laundering processes to align digital settlement speed with standard banking safeguards before any wider deployment.