The $40 Billion Challenge

In 2024, the Philippines ranked among the top five recipients of remittances among low- and middle-Income countries, with Filipino workers sending home an estimated $40 billion to support their families. This remarkable figure underscores the critical role remittances play in the country's economy but also highlights a significant challenge. Sending money to the Philippines remains costly and slow, with fees averaging 6–7%, which means as much as $2.4–$2.8 billion is lost annually to intermediaries. On top of that, families also endure delays of one to three days to access their funds.

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A Vision of Instant, Affordable Transfers

Imagine this instead: a father working abroad sends $100 in USD stablecoins - a type of digital currency designed to maintain a stable value by being pegged to assets like the US dollar. The funds are instantly swapped into PHPX - a peso-backed stablecoin built on Hedera. His family in the Philippines receives nearly the full amount within minutes, with fees potentially lower than 1%, a fraction of what traditional remittance methods charge. They can use the money immediately for tuition, groceries, or other necessities.

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This is the potential of PHPX, launched by Filipino banks and supported by Hedera’s blockchain technology. It represents not just faster and cheaper cross-border payments but a reimagining of how blockchain and regulatory compliance can work together to empower millions.

Basel and MiCA: Building Trust in PHPX

The strength of PHPX lies in its alignment with global regulatory frameworks, making it a secure and reliable financial instrument. The Basel Committee on Banking Supervision, which sets international standards for managing financial risks, recognizes PHPX as a low-risk crypto-asset. To achieve this, PHPX operates on a permissioned DLT network (Hedera) and is fully backed by reserves held in segregated trust accounts, primarily consisting of government bonds. These reserves are ring-fenced from the liabilities of participating banks, ensuring that PHPX remains stable and bankruptcy remote, provided no fraud occurs.

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PHPX also adheres to the European Union’s Markets in Crypto-Assets Regulation (MiCA), or regional equivalents required by the Bangko Sentral ng Pilipinas (BSP). MiCA fosters financial stability and protects consumers by requiring crypto-assets to meet rigorous standards for transparency, security, and operational integrity. By aligning with these frameworks, PHPX ensures seamless cross-border operations and sets a new standard for trust in stablecoins, fostering adoption both in the Philippines and internationally.

Bridging Compliance and Innovation with Hedera

The adherence to Basel and MiCA lays the foundation for trust, but the success of PHPX relies on its technological backbone - Hedera. Hedera’s low transaction fees make cross-border payments affordable, while its high-speed processing ensures transactions settle in seconds. For remittances, this speed means families can access funds when they need them most, without delays.

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Hedera’s governance, supported by global institutions like Google, IBM, and Boeing, ensures a transparent and decentralized platform that businesses can trust. Additionally, its energy-efficient infrastructure minimizes environmental impact, aligning PHPX with global sustainability goals. By building PHPX on Hedera, Filipino banks have chosen a platform that bridges regulatory compliance and cutting-edge technology, ensuring scalability and long-term trust.

Venly: Enabling Blockchain-Powered Innovation

At Venly, we see PHPX as a powerful example of how stablecoins and distributed ledger technology can address real-world problems, such as the inefficiencies of traditional remittance systems. As a proud partner of Hedera, Venly provides the tools and infrastructure businesses need to adopt blockchain technology seamlessly.

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Our Payment API, fully integrated with Hedera, enables businesses to bridge the gap between fiat and crypto transactions. It allows for fiat-to-crypto on/off ramps, Digital Asset purchases, and the creation of scalable payment solutions - all within a fully compliant framework. By simplifying the integration of blockchain-powered systems, Venly empowers businesses to unlock innovation and bring the benefits of technology directly to their users.

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From our perspective, PHPX exemplifies how blockchain can drive financial inclusion, offering a faster, more efficient way for families to receive the support they need.
At Venly, we are committed to making blockchain practical, accessible, and impactful.

How Blockchain Makes a Difference

For Marie, a mother of two, the remittances her husband sends from abroad are more than financial support - they are a lifeline. Under traditional systems, part of this lifeline is eroded by high fees, leaving less for tuition fees, groceries, or healthcare.

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With blockchain-powered solutions like PHPX, Maria no longer has to worry about these losses. Her husband uses stablecoins such as USDT to send funds, which are instantly swapped into PHPX and made available to her within minutes. This is not just about speed; it’s about having more financial freedom and security.

Unlock Blockchain’s Value for Your Business

The success of PHPX highlights blockchain’s ability to address real-world challenges. To help businesses explore these opportunities, Venly created the StartToBlockchain Innovator Program, designed for forward-thinking leaders eager to experiment and learn.

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Through this program, businesses can access expert-led webinars that showcase how blockchain is reshaping industries like finance, gaming, and supply chains. Participants receive tailored advice on aligning blockchain with their goals and prototyping credits to test blockchain solutions with support from Venly’s expert team.

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The StartToBlockchain Innovator Program offers businesses the chance to explore blockchain’s potential, experiment with real solutions, and discover how this technology can transform their operations.

➡️ Join our StartToBlockchain Innovator Program and start building your blockchain-powered solutions today.

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