Crypto fanatics, rejoice!
The Union Bank of the Philippines, more commonly known as UnionBank, is now working to become the first universal bank in the country to facilitate cryptocurrency exchange within its mobile application.
With the upcoming launch of UnionBank’s latest financial service for its clients, users will soon be able to buy and sell bitcoin and other cryptocurrencies directly from their banking app.
The new exchange functionality will initially be offered to randomly pre-selected users of the mobile app, but the bank’s eventual goal is to roll it out to a wider audience in the near future.
The Aboitiz-led financial institution will also offer select users the option to exchange bitcoin and other digital currencies without the need for a separate e-wallet.
Blockchain to power the future of banking
In a statement, UnionBank shared the view that blockchain is a technology that could eventually power the future of banking in the Philippines.
“At the same time, we also recognize that cryptocurrency has been one of the services that a lot of customers are already looking for, especially the younger generation, and this demand was accelerated by the pandemic,” commented Cathy Casas, head of UnionBank’s Digital Asset Markets, Blockchain, and Application Programming.
“Assuming markets are ‘stable,’ the average Filipino investor will likely hold 3% to 5% of their personal assets in digital assets like Bitcoin in five years, which is up from around 1% to 2% now,” she adds. “Many crypto investors are young people, some of whom earn tokens from play-to-earn virtual games. I believe that it’s the way to future-proof our banking business.”
UnionBank is not a newcomer to blockchain technology.
As far back as 2018, the bank has already been using blockchain to enable rural banks to access its main banking network. It has also been working with OneConnect, the Chinese-Singapore fintech, for its AI and blockchain solutions.
In July 2020, the Philippines Bureau of the Treasury (BTr) also started issuing retail bonds, which piloted UnionBank’s bonds.ph mobile app for distribution. However, the bonds.ph app is a pilot solution that was being run alongside normal distribution routes, which includes online purchases at the Treasury website and over-the-counter at various banking outlets.
So, for the pilot, UnionBank decided to partner with the Philippines Digital Asset Exchange (PDAX).
“The launch of bonds.ph paves the way for all Filipinos, particularly the unbanked, to easily and affordably invest in the BTr’s newest retail treasury bond, RTB-24,” then said Rosalia V. De Leon, National Treasurer.
UnionBank as a crypto-friendly institution
UnionBank, which is one of the top 10 banks by assets under management in the Philippines, is slowly but surely establishing itself as a crypto-friendly institution.
About a year ago, it has already announced preparations to pilot a custody service for cryptocurrencies. Then, in January of this year, the bank also unveiled plans to offer trade services for crypto, which would allow it to capitalize on its fast adoption of digital tokens in the Asian nation.
Another initiative in the same direction is the bank’s proposed partnership with the NFT game “Art of Dreams,” which the company announced in April this year.
Henry Aguda, Senior Executive Vice President, Chief Technology and Operations Officer, and Chief Transformation Officer of UnionBank, says, “Not only does this help us ensure that the bank is more future-ready; this also means that we will now be able to serve the needs of our customers who use cryptocurrencies.”
The top executive added that the in-app crypto exchange feature is among the projects that the bank is currently working on as it prepares to enter the metaverse.
UnionBank has since announced its intention to launch a Metaverse Center of Excellence in the coming months.
While the platforms of other digital banks in the Philippines, like Maya, are already offering exchange options for crypto assets, UnionBank will be the first major traditional lender to actually implement one.
The bank is a licensed cryptocurrency exchange with the Bangko Sentral ng Pilipinas (BSP), the main authority when it comes to issuing licenses to crypto trading platforms and service providers in the Philippines.