by Kevin Helms
One of the largest banks in the Philippines, Unionbank, is reportedly launching cryptocurrency trading and custodial services. “It’s a way to future-proof our banking business,” said a Unionbank executive.
Union Bank of the Philippines (UBP), also known as Unionbank, plans to offer cryptocurrency trading and custodial services, Bloomberg reported Thursday.
Unionbank is one of the largest universal banks in the Philippines with over $15 billion in assets under management (AUM). The bank is one of the first financial institutions in the Philippines to adopt cryptocurrency.
Cathy Casas, head of the bank’s blockchain and application programming interface group, explained that the average Filipino investor currently holds about 1% to 2% of their personal assets in cryptocurrency, like bitcoin. She added that if the markets are “stable,” investors would hold between 3% and 5% in 5 years.
The Unionbank executive estimates that about 5% of the local population has dabbled in cryptocurrency. She added that many crypto investors are young people, some of whom earn tokens from play-to-earn virtual games.
It’s a way to future-proof our banking business.
On Thursday, Metaco, a provider of security software and infrastructure for the digital asset ecosystem, announced that Unionbank is implementing its digital asset management services. Metaco added that Unionbank is deploying services on IBM Cloud.
The bank first announced that it was piloting a crypto custody service in August last year, noting at the time that crypto assets are here to stay. Casas noted that the bank’s custodial service for digital assets will include tokenized bonds.
The central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), has cautioned against investing in crypto. The central bank warned that cryptocurrencies could “pose a danger to the financial system” citing their vulnerability to illicit activities like money laundering and terrorist financing.
We are making efforts to educate our clients also via social media, making sure that they are safe.
Unionbank is one of the licensed cryptocurrency exchanges approved by the central bank. The bank launched its own stablecoin, PHX, in 2019 to provide rural banks in its network with easier access to payments and remittances.
What do you think about Union Bank of the Philippines launching cryptocurrency trading and custodial services? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Farmville Creator Zynga to Launch NFT Games, Says Gaming Firm’s Blockchain Lead
American social game developer Zynga has plans to launch non-fungible token (NFT) games in the near future. Zynga’s vice president of blockchain, Matt Wolf, told the press that the company is looking at the cycle right now and “figuring out … read more.
Students Mining Crypto in Dorms May Face Criminal Prosecution in Russia, Lawyer Says
University students in Russia minting digital currencies in their dormitories risk penalties and even criminal charges, according to a legal expert quoted by local media. The warning comes as Russian authorities are trying to curb crypto mining with cheap energy … read more.
Union Bank of Philippines to Offer Crypto Trading and Custodial Services – Featured Bitcoin News – Bitcoin News
by Kevin Helms