UnionBank of the Philippines has successfully ended a pilot run of a blockchain-powered cross-border remittance project from the country to Singapore.
Collaboration with Singapore
According to a recently released press statement, the pilot program is the outcome of a collaboration between the Philippine-based bank and Singapore’s OCBC Bank. The project saw the two parties implementing the Adhara global payments and liquidity management platform and the UnionBank-UBX’s i2i system to conduct the remittance.
UnionBank utilized a blockchain-powered tokenized fiat to transfer from OCBC ban to another account at Cantilan Bank, a rural bank located in Surigao Del Sur.
The project intends to give millions of Filipinos without bank accounts the capacity to make use of financial services by linking rural banks to the Philippines’ central financial grid.
Melchor Plabasan on the Topic
Melchor Plabasan, the OIC of the Bangko Sentral ng Pilipinas’ (or the Central Bank of the Philippines) Technology Risk and Innovation Supervision department, stated that the institution expects that distributed ledger tech and blockchain will be used more as the technology simplifies remittances and payments.
Meanwhile, the Senior Vice President and head of UnionBank’s Fintech Business Group Arvie de Vera said that with the use of i2i in the pilot, banks in the rural areas can now accept direct-to-account remittances. He added that this was just the start as more value added services can also become accessible, thanks to the connected platform.
De Vera said this will help empower more rural banks that were once excluded financially. Now they will be able to tap into other worldwide banking services.