UnionBank of the Philippine’s digital innovation arm, UBX, has announced a significant collaboration with JUST Finance, a global leader in blockchain and tokenization solutions, to launch a multi-currency stablecoin exchange. This move is expected to transform cross-border payments, remittances, and foreign exchange transactions by utilizing stablecoins such as USDC, a regulated, fully-backed US dollar stablecoin issued by Circle, a global technology company.
What This Means for Cross-Border Transactions
This initiative simplifies and lowers the cost of cross-border payments. The exchange uses stablecoins on a public yet permissioned blockchain, allowing users to swap and convert multiple currencies. This technology is designed to improve the efficiency of foreign exchange transactions for freelancers, SMEs, and overseas Filipino workers.
The Role of Partners
JUST Finance will host a liquidity pool, ensuring users have access to fast, cost-effective solutions for cross-border payments. Meanwhile, UBX, with its VASP license from the Central Bank of the Philippines, aims to tap into the Philippines’ $40 billion annual international remittance market.
Voices Behind the Initiative
David Inderias, CEO of JUST Finance, expressed excitement, emphasizing the potential to bring the benefits of stablecoins and on-chain finance to the mainstream. “This liquidity pool addresses the demand for faster and cheaper cross-border transactions,” Inderias said.
UBX’s CEO, John Januszczak, shared the vision of improving the security, efficiency, and liquidity of remittances, B2B payments, and trade financing. “By promoting stablecoins, we aim to deliver quantum improvements in transaction efficiency and cost,” Januszczak stated.
Zooming Out: A Continued Blockchain Commitment
UnionBank and UBX have previously used blockchain technology to improve cross-border transactions. The Philippines continued dedication to blockchain technology keeps them at the front lines of global fintech innovation.
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