Bank of the Philippine Islands (BPI), the Philippines' oldest and one of its largest banks, has announced plans to pilot a stablecoin-based settlement system designed to make cross-border payments faster and more affordable for freelancers, virtual assistants, and other recipients of overseas income, according to local Philippine media reports.

The pilot is being developed in partnership with Meridian, a global digital clearinghouse. Under the planned system, stablecoins will function exclusively as a settlement layer. Once transactions are processed on-chain, the funds will be converted into Philippine Pesos and deposited directly into customers' BPI accounts. This structure allows users to benefit from on-chain payment infrastructure without directly holding or handling digital assets, an important distinction in a market where regulated banks remain the primary point of access for many retail financial services.

"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," said TG Limcaoco, BPI President and CEO. "Exploring stablecoin rails is a natural extension of BPI's digitalization strategy and customer focus."

BPI indicated that the initial rollout will concentrate on payroll and overseas earnings. A broader launch is targeted ahead of the ASEAN Summit scheduled for November 2026. However, the expansion remains contingent upon approval from the Bangko Sentral ng Pilipinas (BSP), the country's central bank, as well as compliance with consumer protection and reserve transparency requirements. Those requirements are central to bank-led stablecoin use cases because the tokens are intended to maintain a stable value against reference assets, making oversight of reserves, redemption processes, and customer disclosures material to any broader deployment.

Will Haering, President and CEO of Meridian, praised the collaboration, stating: "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."

The Philippines has long been one of the world's largest recipients of remittances, with overseas Filipino workers sending home tens of billions of dollars annually. Traditional cross-border payment corridors often involve intermediary banks, extended settlement times, and layered fees. Stablecoin-based settlement systems have emerged as a potential alternative, offering near-instant transfer and reduced costs by leveraging blockchain infrastructure, while still requiring regulated on- and off-ramps when funds enter the domestic banking system.

BPI, founded in 1851, is a subsidiary of Ayala Corporation, one of the largest and oldest conglomerates in the Philippines. The bank has been pursuing a broader digital transformation strategy in recent years, investing in digital banking channels and modernized payment infrastructure. The pilot will be watched as a test of whether blockchain-based settlement can be integrated into conventional bank accounts without shifting custody or digital-asset handling responsibilities to end users.