Coins.ph’s Philippine Peso-backed stablecoin, PHPC, has exited the Bangko Sentral ng Pilipinas (BSP) Regulatory Sandbox Framework as of June 10, 2025.

This allows PHPC to expand its operations and minting capacity for uses like remittances and cross-border transactions.

The sandbox pilot, launched in 2024, tested PHPC’s stability, security, and utility.

Coins.ph confirmed the stablecoin met its key performance indicators, showing clear demand in the market.

PHPC remains fully backed by cash and equivalents in Philippine bank accounts, maintaining a 1:1 peg to the Peso.

Users can continue to deposit and withdraw PHPC via the Coins.ph platform. Coins.ph will provide public disclosures, regular updates to BSP, and conduct third-party audits to ensure transparency.

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🔗 Source: Coins.ph

🧠 Food for thought

1️⃣ Southeast Asian stablecoin regulation reflects regional economic priorities

The Philippines’ stablecoin approach follows a broader APAC regulatory trend, with Bangko Sentral ng Pilipinas (BSP) joining monetary authorities in Singapore, Hong Kong, and Japan in developing tailored frameworks for digital currencies 1.

This regional momentum is significant as the Central and Southern Asia and Oceania region accounts for over $750 billion in crypto asset inflows (16.6% of global value) from July 2023 to June 2024 2.

The BSP’s regulatory sandbox model, allowing 3-12 months of controlled testing before wider deployment, mirrors Hong Kong’s Stablecoin Issuer Sandbox approach, demonstrating a measured path to innovation 3.

For the Philippines specifically, the focus on remittances through PHPC addresses a critical economic need, as the country remains one of the world’s largest remittance recipients, with overseas Filipino workers sending approximately $36.14 billion in 2023.

PHPC’s development is particularly strategic given the country’s FATF graylist status, which has increased scrutiny on traditional financial channels and raised costs for cross-border transactions 4.

2️⃣ Philippine stablecoin builds on evolving local financial infrastructure

The PHPC isn’t the Philippines’ first stablecoin initiative—it follows earlier efforts like UnionBank’s PHX, which similarly aimed to enhance financial inclusion through blockchain technology 3.

This progression shows the BSP’s incremental approach to digital currency innovation, with each iteration addressing specific regulatory and technical challenges identified in previous implementations.

Coins.ph’s selection for the PHPC pilot leverages the exchange’s established user base of 18 million Filipinos, providing immediate scale potential once full deployment is approved.

The BSP’s requirement for Coins.ph to maintain cash reserves equal to the circulating supply of PHPC establishes a 1:1 backing model. This fully-backed model addresses concerns about stablecoin reliability that have plagued other projects globally, particularly given the intense scrutiny around reserve transparency that affected stablecoins like Tether 5.

3️⃣ Stablecoins becoming key financial infrastructure in developing economies

The Philippines’ stablecoin development occurs against a backdrop where seven of the top 20 countries in the Global Crypto Adoption Index are in the Central and Southern Asia and Oceania region, indicating strong regional momentum 2.

Stablecoins are increasingly serving critical infrastructure roles in countries facing economic challenges. Unlike general cryptocurrencies that face volatility concerns, peso-pegged stablecoins provide stability while still offering the efficiency and accessibility benefits of blockchain technology for everyday transactions.

In practice, PHPC could substantially reduce remittance costs from the current average of 6.4% for sending $200 to the Philippines, potentially saving Filipino families millions collectively each year.

The pilot’s focus on testing both payments and DeFi applications indicates BSP’s forward-looking approach to enabling multiple use cases beyond simple transfers, positioning the Philippine financial system to participate in next-generation financial services 3.

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