One of many largest banks within the Philippines, Unionbank, is reportedly launching cryptocurrency buying and selling and custodial providers. “It’s a option to future-proof our banking enterprise,” stated a Unionbank government.
Philippines’ Unionbank to Provide Crypto Buying and selling and Custodial Providers
Union Financial institution of the Philippines (UBP), often known as Unionbank, plans to supply cryptocurrency buying and selling and custodial providers, Bloomberg reported Thursday.
Unionbank is among the largest common banks within the Philippines with over $15 billion in belongings beneath administration (AUM). The financial institution is among the first monetary establishments within the Philippines to undertake cryptocurrency.
Cathy Casas, head of the financial institution’s blockchain and utility programming interface group, defined that the typical Filipino investor at present holds about 1% to 2% of their private belongings in cryptocurrency, like bitcoin. She added that if the markets are “secure,” buyers would maintain between 3% and 5% in 5 years.
The Unionbank government estimates that about 5% of the native inhabitants has dabbled in cryptocurrency. She added that many crypto buyers are younger folks, a few of whom earn tokens from play-to-earn digital video games.
Casas commented:
It’s a option to future-proof our banking enterprise.
On Thursday, Metaco, a supplier of safety software program and infrastructure for the digital asset ecosystem, introduced that Unionbank is implementing its digital asset administration providers. Metaco added that Unionbank is deploying providers on IBM Cloud.
The financial institution first introduced that it was piloting a crypto custody service in August final yr, noting on the time that crypto belongings are right here to remain. Casas famous that the financial institution’s custodial service for digital belongings will embody tokenized bonds.
The central financial institution of the Philippines, Bangko Sentral ng Pilipinas (BSP), has cautioned towards investing in crypto. The central financial institution warned that cryptocurrencies might “pose a hazard to the monetary system” citing their vulnerability to illicit actions like cash laundering and terrorist financing.
Casas stated:
We’re making efforts to coach our purchasers additionally by way of social media, ensuring that they’re protected.
Unionbank is among the licensed cryptocurrency exchanges authorized by the central financial institution. The financial institution launched its personal stablecoin, PHX, in 2019 to supply rural banks in its community with simpler entry to funds and remittances.
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