By George Ward
In its latest strategic partnership with the Swiss-based METACO, the Union Bank of the Philippines has introduced crypto trading services involving Bitcoin and Ethereum to its investment portfolio.
The Partnership with METACO
According to the latest announcement from the digital asset service provider, Union Bank is now live on the METACO platform, where it can provide crypto trading services to customers.
In addition, the announcement is part of the plan signed by the two entities in January this year. As the largest financial institution in the Philippines, Union Bank is the first regulated bank to offer digital currency exchange services.
The chief technical officer of the bank, Henry Aguda, noted that the bank has been working on implementing a crypto-friendly policy for some time now. The country has a high crypto adoption rate, with a June 2022 report showing more than 4% of Filipinos have some crypto assets.
Union Bank’s head of blockchain application, Cathy Casas, stated:
“On average, Filipinos are likely to hold 3%–5% of their assets in digital tokens if the market is stable for five years.” Many investors are young, with most earning money from play-to-earn platforms offering virtual games.”
In 2019, the bank launched its native stablecoin, PHX, pegged to the Peso. Moreover, the bank’s aim for PHX is to become a medium of exchange and a store of value targeted at the growing number of crypto users in the country. In April 2022, the bank jumped into the Metaverse by partnering with Ark of Dreams, a virtual ecosystem solutions provider.
More Banking Giants Eyes Crypto Trading Expansion
By its recent move, Union Bank is following in the same footsteps of some of the world’s largest banks by providing crypto trading products and services. In another development, N26, the Berlin-based digital financial services provider, recently announced that it would begin offering crypto trading as part of its services to customers.
N26 has already penned a deal with the Austrian crypto platform, Bitpanda to offer crypto trading. In addition, in September 2022, Singapore’s biggest banking platform, DBS, unveiled its crypto trading services to the public.
Users could access the various services on the bank’s digital exchange, DDEx. Furthermore, the bank permits accredited users to invest at least $246,000 to trade some selected crypto assets. On the other hand, crypto traders must invest a minimum of $500.
Large institutions continue to pump money into crypto as part of their portfolio diversification plans. According to reports, this year alone, about $17 billion of capital has found its way into the digital asset industry, fueled by institutions’ continued bullish stance on the assets.
However, despite the increased interest from institutional investors, most still cannot access the industry directly. As a result, firms like Coinbase Global, CleanSpark, and others are providing solutions to allow investors to participate easily in the ecosystem.