Bank of the Philippine Islands (BPI) is preparing to launch a stablecoin-based remittance pilot before the end of the year through its partnership with global digital clearing house Meridian, according to the bank's top executive.

BPI President and Chief Executive Officer Jose Teodoro K. Limcaoco told reporters last week that the bank intends to begin implementing stablecoin technology as a remittance rail early in the fourth quarter. Under the arrangement, Philippine pesos and other fiat currencies will remain the actual funds customers send and receive, while settlement and transfer will take place on a blockchain network.

“We're just using stablecoin as a rail. The remittance will be fiat. The client will never see the stablecoin,” Mr. Limcaoco said.

BPI announced the partnership with Meridian in July 2026, with the goal of launching stablecoin settlement rails designed to improve the speed and efficiency of cross-border payment flows. The bank said it plans to initially pilot the infrastructure for payroll credits targeting workers in the informal economy, with a broader rollout of services expected in November.

Stablecoins are digital tokens pegged to a fiat currency or commodity to maintain a stable value, distinguishing them from more volatile cryptocurrencies. They have gained adoption in global finance as a means of facilitating faster and lower-cost cross-border transactions compared with traditional correspondent banking channels, which typically involve multiple intermediaries and can take several business days to settle.

The pilot comes as financial institutions across Asia and beyond explore blockchain-based settlement to address long-standing friction points in cross-border payments. The Bangko Sentral ng Pilipinas, the country's central bank, has operated a regulatory framework for virtual asset service providers since 2021, and has separately pursued modernization initiatives for domestic digital payments.

BPI, one of the largest banks in the Philippines, was established in 1851 and is among the country's oldest financial institutions. The Philippines is one of the world's largest recipients of remittances, with overseas Filipino workers sending billions of dollars home annually, making payment efficiency a significant priority for the country's banking sector.

Separately, BPI reported that its net income declined by 0.4% in the first half of 2026 to P32.8 billion, as rising expenses and increased loan-loss provisioning offset strong revenue growth from its core businesses. — A.M.C. Sy