What Is PHPC? The First Stablecoin Pegged to Philippine Peso

What Is PHPC?

PHPC is a stablecoin pegged to the Philippine Peso that is issued by Coins.ph on Ronin Network, a Layer 1 blockchain developed by Sky Mavis. 

Key Takeaways

• PHPC is a stablecoin pegged to the Philippine Peso. It is issued by Coins.ph, a centralized cryptocurrency exchange offering financial services to investors in the region.

• PHPC is issued on Ronin Network, a Layer 1 blockchain developed by Sky Mavis for gaming.

• Apart from its relevance in the GameFi sector, PHPC can be used just like any other stablecoin for regular financial settlement, preservation of value, and trading on decentralized and centralized exchanges.

• Coins.ph claims that PHPC is operated according to proper regulatory rules and is sufficiently solvent.

• This article looks at the PHPC stablecoin, how it works, and where users can access it.

Stablecoins are arguably the most widely traded cryptocurrencies. On centralized and decentralized exchanges and regular financial transactions, they serve as a store of value for users in between trades, as they are designed to maintain a constant value based on the asset they’re pegged to. 

But even after growing to a total market cap of over $163 billion according to data from CoinGecko, the current catalog of stablecoins doesn’t cover every region relevant to the crypto space, with most stablecoins pegged to the US dollar. 

The Philippines is particularly dominant in the GameFi sector, with regional data suggesting that players from this region constitute a significant percentage of web3 gaming enthusiasts. With Coins.ph’s new PHPC stablecoin, the crypto community in the Philippines will now have a tokenized version of the Peso. 

On May 9, 2024, the custodial crypto institution based in the Philippines announced that it had received approval from the Bangko Sentral ng Pilipinas (BSP)  to pilot a stablecoin backed by the Philippine Peso. Just two months later, it announced the launch of the PHPC stablecoin on Ronin Network.

In this article, we take a look at how the PHPC works and how you can start using it.

An Introduction to PHPC

PHPC is a stablecoin pegged to the Philippine Peso, and is currently issued by Coins.ph on Ronin Network. Ronin is an EVM-compatible Layer 1 network built by Sky Mavis for gaming, while Coins.ph is one of the largest centralized crypto exchanges in the Philippines. 

According to Coins.ph, the PHPC stablecoin is a fiat-backed asset. It is backed with a 1:1 ratio with Philippine Pesos and in accordance with the regulatory provisions of the country. Following its launch, PHPC is now available to over 18 million investors on the platform.

Speaking on the decision to issue the asset on a gaming-focused blockchain network, Wei Zhou, CEO of Coins.ph ,said,

“With the Philippines being the epicenter of web3 gaming adoption, it was important for us to make PHPC available on Ronin, the largest web3 gaming chain in the world. Many Filipinos and Coins.ph customers use Ronin and there are a number of areas Ronin and Coins are looking to collaborate on when it comes to using PHPC for transfers, payments, trading, and more.”

With PHPC and the partnership with Ronin Network, Coins.ph hopes to offer Filipinos an improved user experience when using crypto for everyday transactions, from acting as a store of value for web3 gamers, to other user cases like using PHPC for in-store payments.

With PHPC, users will enjoy improved efficiency and cheaper transactions and payments. Now, let’s look at how the PHPC stablecoin works.

How Does the PHPC Stablecoin Work?

PHPC is a stablecoin pegged to the Philippine Peso, and is backed by physical cash, time deposits, and short-term money market instruments. The fiat money backing PHPC is held in custodial banking institutions selected by the issuer, Coins.ph. 

It is an ERC-20 standard token minted on the Ronin Network, and works through a mint and redemption process. PHPC can be minted by approved institutions or individuals who provide a cash or (accepted) commodity equivalent to the amount of PHPC they wish to mint.

To mint PHPC, the client presents the cash or commodity equivalent, which will be held by Coins.ph under a contract agreed upon by both parties. Coins.ph then proceeds to mint the stablecoin on the supported blockchain and sends it to the wallet address provided by the client.

Upon redemption of PHPC for physical cash or commodity-equivalent, the client transfers the amount of PHPC for redemption to Coins.ph. The institution then proceeds to burn PHPC and approves the remittance of the equivalent value to the client.

Uses of PHPC

The minted PHPC can be used for the following purposes:

Decentralized Gaming

Ronin Network is a blockchain designed for gamers and web3 game developers. With the Philippines being a key region for web3 gaming, Ronin’s integration of PHPC into the blockchain’s economy will prove a boon to Filipino players. Like other crypto assets, PHPC can be used to purchase in-game items or swapped for other assets on protocols deployed on Ronin. Ronin has published an announcement, recognizing the relevance of the PHPC stablecoin and stating the utility of the asset on the network.

Domestic and International Financial Payments

As a representation of the Philippine Peso on the blockchain, PHPC can be used for financial transactions in the country and outside it. PHPC is a borderless payment solution that can be used by merchants as a payment option, and also by individuals for p2p payment and for remittances. PHPC offers users a low-cost and efficient alternative to traditional financial infrastructure, potentially making it easier for Filipinos worldwide to transact online. 

Crypto Trading

PHPC is currently tradable on Coins.ph. Users on the platform can exchange PHPC for other supported assets. Like other stablecoins, PHPC can be integrated into spot and derivatives trading platforms. 

Like other stablecoins, PHPC offers users a way to store their assets between trades, while offering Filipino users an easy way to define the value of other assets relative to the Peso through PHPC trading pairs. 

Where Is PHPC available?

As the issuer, PHPC is currently available on Coins.ph. Traders on the platform can purchase PHPC using paired crypto assets and other stablecoins. As PHPC is issued on Ronin, games on Ronin Network may also integrate the asset into their games’ economy. 

At launch Coins.ph also shared plans to list the asset on Katana – a decentralized exchange on Ronin Network with the PHPC/RON pair. In line with this goal, PHPC is currently tradable on the Katana DEX.

Note that the only reliable source for announcements on further availability is Coins.ph. 

Final Thoughts

Stablecoins open up the crypto space to investors. Aside from being a means of preserving value by being pegged to national currencies that are less prone to fluctuations, they simplify the standardization of value in the crypto space. 

Outside the GameFi space and beyond the crypto community, merchants in the country can now utilize a more flexible financial structure, relative to physical cash or traditional e-banking services. However, users and the issuing institution are reminded of the need to comply with the full regulatory specification while interacting with the asset. Coins.ph and other custodians will look towards scaling the adoption of the PHPC stablecoins in the future.

This article reviews PHPC for educational purposes only and is not financial advice. Always do your own research. Featured projects are not endorsed.