Union Bank of Philippines to Offer Crypto Trading and Custodial Services

One of the most important banks within the Philippines, Unionbank, is reportedly launching cryptocurrency buying and selling and custodial companies. “It’s a technique to future-proof our banking enterprise,” stated a Unionbank govt.

Philippines’ Unionbank to Offer Crypto Trading and Custodial Services

Union Bank of the Philippines (UBP), also referred to as Unionbank, plans to supply cryptocurrency buying and selling and custodial companies, Bloomberg reported Thursday.

Unionbank is likely one of the largest common banks within the Philippines with over $15 billion in belongings underneath administration (AUM). The financial institution is likely one of 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 common Filipino investor at the moment 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 govt estimates that about 5% of the native inhabitants has dabbled in cryptocurrency. She added that many crypto buyers are younger individuals, a few of whom earn tokens from play-to-earn digital video games.

Casas commented:

It’s a technique 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 companies. Metaco added that Unionbank is deploying companies 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 may “pose a hazard to the monetary system” citing their vulnerability to illicit actions like cash laundering and terrorist financing.

Casas stated:

We are making efforts to teach our purchasers additionally by way of social media, ensuring that they’re protected.

Unionbank is likely one of the licensed cryptocurrency exchanges approved by the central bank. 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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