The Filipino Union Bank will start offering crypto custodial services as cryptocurrencies grow in popularity in the country so let’s read more in today’s latest crypto news.
The Filipino Union Bank plans to open a custodial service for crypto as the asset class is becoming a lot more popular among the local population. As cited by Bloomberg, Cathy Casas as the bank’s head of blockchain and applications coordination department, noted the plans of the institution. The executive explained that it is a necessary strategy to be employed and to secure the future of the organization. The decision took notice of the fact that 1% to 2% of all Filipinos hold crypto and with the increasing interest in the asset class, it is estimated that up to 5% of the population will be investing in crypto in the next few years.
Casas explained that most of the crypto users are in the younger generation that owns tokens and earns some profits via play-to-earn gaming platforms. Accoridng to a binance estimation, we can see that there are more Filipinos holding crypto than the average global assets and the exchange also estimates that one in five Philippines nationals already started dabbling with crypto. The planned services by the Union Bank will consist of tokenized bonds that are issued to the customers:
“We are making efforts to educate our clients also via social media, making sure that they are safe.”
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The organization expects a seamless delivery considering that it is the first bank in the region to launch its own stablecoin PHX back in 2019. The PHX aims to reach the unbanked population as the bank noted. As the awareness of crypto grows, regulators have their work cut out for them as they go towards limiting marketing to retail consumers and warn of risks associated with the assets. The governor of the Central Bank of the Philippines Benjamin Diokno warned that crypto could pose danger to the financail system and added that investing in them is vulnerable because it could create more room for illicit activities.
As recently reported, The Singapore-based blockchain firm BCB Blockchain is making waves in the industry this month and The government of the Philippines and BCB Blockchain have signed a memorandum of agreement (MoA) under which one branch of the Philippines Department of Science and Technology (DOST) will support the development of local smart cities.
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