UnionBank offers trading and custodial services to Clients with Digital Assets

UnionBank continues to make moves in the crypto industry as it plans to offer trading and custodial services to capitalize on the faster adoption of digital tokens in the Philippines.

According to the bank’s head of blockchain and application programming, Cathay Casas, the average Filipino will hold 3-5% of their assets in digital assets in the next five years.

“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,” Casas said in an interview.

She estimates that 5% of the local population has experimented with cryptocurrencies, which is in line with the global average. However, the transition has not been completely seamless as PH central bank Governor, Benjamin Diokno, has cautioned against crypto. He notes that they could “pose a danger to the financial system” as they can be used for illicit activities.

Regulators across the globe have acknowledged crypto’s rapid growth as some have taken measures against these assets. Earlier this week, Singapore instructed companies working with crypto to stop most consumer-facing marketing, citing concerns that retail traders are at risk. Furthermore, the coin market has taken significant hits with Bitcoin being down 40% since last November.

“We are making efforts to educate our clients also via social media, making sure that they are safe,” Casas said.

According to Casas, UnionBank’s custodial services for digital assets will be capable of covering tokenized bonds. The bank has been friendly to crypto as last 2019 they became the first Philippine bank to release its stablecoin, known as PHX. This stablecoin provides rural banks with easier access to remittances and payments.

Source: Bloomberg