Photo source: coins.ph 

Stablecoins backed by traditional investments allows the market to have confidence in their price. In the Philippines, The Bangko Sentral ng Pilipinas (BSP) has provided a controlled environment through its Regulatory Sandbox Framework, allowing new financial products to be tested under close supervision before wide public adoption.

Following a period of testing within this framework, one Philippine Peso-backed stablecoin has completed its evaluation phase.

Coins.ph, a cryptocurrency exchange in the Philippines with over 18 million users, announced that its Philippine Peso stablecoin (PHPC) is exiting the Bangko Sentral ng Pilipinas (BSP) Regulatory Sandbox Framework. All remaining PHPC is now fully redeemable, allowing for a possible increase in minting capacity to support large transactions in the coming months.

Following the sandbox pilot that began in 2024, PHPC showed initial indications of stability, security, and potential utility for Filipino users. Within two months of the sandbox, PHPC met the key performance indicators (KPIs), suggesting existing demand and possible use cases for the stablecoin. The completion of the regulatory sandbox marks a step forward in the Philippines' digital currency ecosystem and allows PHPC to move toward a broad adoption across various applications.

Now that sandbox restrictions are lifted, Coins.ph is now preparing for the next phase of PHPC's growth operations, following the necessary regulatory requirements. This is set to increase the supply of PHPC to meet growing market demand. This expanded minting capacity will support large transaction volumes and enable new applications for the stablecoin across the Philippine financial ecosystem.

"Exiting the BSP regulatory sandbox represents a pivotal moment for PHPC and the broader adoption of digital currencies in the Philippines," said Wei Zhou, CEO of Coins.ph. "We can now unlock PHPC's full potential, particularly in areas where Filipinos need it most – remittances and cross-border transactions."

An important application of PHPC's expanded capacity is its potential use in the Philippines' remittance market. As a major recipient of remittances, the country may benefit from efficient fund transfers. The stablecoin allows for quick, low-cost, and easy access transactions by removing traditional banking intermediaries, shortening processing times, and enabling recipients to access funds without the need for conventional bank accounts.

The completion of the BSP sandbox program highlights the Philippines' ongoing efforts in stablecoin regulation and adoption. The collaboration between Coins.ph and the BSP has contributed to early examples of how digital assets may be integrated into national financial systems in a secure manner.

"This achievement reflects the BSP's positive approach to digital innovation and our commitment to building compliant, user-focused financial products," added Zhou. "We look forward to working with regulators, partners, and the Filipino community to realize PHPC's full potential in modernizing how money moves in and out of the Philippines."

As part of the exit process, Coins.ph continues to follow BSP compliance requirements, including public disclosure of PHPC holders, regular progress reporting to the BSP, and independent third-party audits covering proof of reserves, smart contract security, and system vulnerability assessments.

PHPC is backed by cash and cash equivalents held in Philippine bank accounts, maintaining its 1:1 peg to the Philippine Peso. Users may deposit and withdraw PHPC through the Coins.ph platform.

For more details visit Coins.ph.