Coins.ph’s $PHPC Stablecoin Achieves Regulatory Milestone
Coins.ph, a licensed Virtual Asset Service Provider (VASP) in the Philippines, has announced that its Philippine Peso-backed stablecoin, $PHPC, has successfully moved out of the Bangko Sentral ng Pilipinas (BSP) Regulatory Sandbox Framework, with all remaining $PHPC now fully redeemable.
$PHPC Surpasses BSP’s Performance Metrics
In a recent announcement, Coins.ph revealed that its stablecoin has left the Regulatory Sandbox Framework after not only meeting but exceeding the BSP’s critical performance indicators within just two months of its testing phase. This testing was conducted to evaluate the stability, security, and practical applications of the stablecoin. The exit from the sandbox marks a significant achievement for Coins.ph in the evolving digital asset landscape in the Philippines, allowing for broader use of $PHPC in remittances and international transactions. With regulatory constraints now lifted, Coins.ph plans to enhance the minting capacity of $PHPC to accommodate increased transaction volumes, thereby expanding its utility within the country’s financial system.
CEO Comments on the Significance of the Exit
Wei Zhou, the Chief Executive Officer of Coins.ph, highlighted the importance of exiting the BSP regulatory sandbox, stating that it signifies a crucial development for $PHPC and the wider acceptance of digital currencies throughout the Philippines. He emphasized the stablecoin’s potential to significantly improve remittances and cross-border transactions, where it is most needed.
Commitment to Compliance and Transparency
Coins.ph reiterated its dedication to regulatory compliance as part of the process of leaving the sandbox. The company plans to ensure transparency by publicly disclosing information about $PHPC holders and providing ongoing updates to the BSP. This will include third-party audits that will verify reserves, assess smart contract security, and evaluate potential vulnerabilities. Coins.ph intends for $PHPC to alleviate inefficiencies in the country’s substantial remittance industry by dramatically reducing processing times from days to mere minutes and cutting costs by removing the need for traditional banking intermediaries.
Understanding the BSP Regulatory Sandbox Framework
The BSP’s Regulatory Sandbox Framework was designed as a controlled setting for testing innovative financial products and technologies under regulatory supervision. This framework permits companies to experiment with advances in technology, such as blockchain and artificial intelligence, in real-world scenarios while ensuring the protection of consumers and the stability of the financial system. Initially introduced in 2004 as a “test-and-learn” methodology, the sandbox was formalized in 2022 and follows a four-stage process: application, evaluation, limited user testing, and exit, wherein the BSP assesses whether the product is ready for broader deployment or requires additional review.
Overview of $PHPC
$PHPC, the Philippine Peso-backed stablecoin, was created by Coins.ph and received BSP approval for its launch last year. In 2024, it was introduced on both the Ronin and Solana blockchains. Coins.ph designed $PHPC to facilitate digital payments and improve financial access, allowing users to deposit, withdraw, and conduct transactions efficiently while enjoying quicker, more affordable, and secure transfers. The stablecoin is fully backed by cash and cash equivalents maintained in Philippine bank accounts.
Recent Developments at Coins.ph
In recent news, Coins.ph has teamed up with Pays0, an electronic money issuer, to facilitate direct conversions from Philippine Peso to cryptocurrency, which aims to connect traditional finance with digital assets. This partnership integrates Coins.ph’s blockchain solutions into Pays0’s platform, enabling faster, more secure, and cost-efficient transactions using stablecoins such as $USDT. Additionally, last April, Coins.ph participated in launching the Circle Payments Network (CPN), a global initiative by $USDC issuer Circle aimed at enhancing cross-border remittances. Coins.ph has committed to facilitating quicker, cheaper, and more transparent overseas money transfers using regulated stablecoins like $USDC.
