UnionBank Gets Approval as Virtual Asset Service Provider in the Philippinesby Fintech News Philippines November 7, 2023
Union Bank of the Philippines recently achieved another first in the industry after securing a Certificate of Authority from the Bangko Sentral ng Pilipinas (BSP) to operate as a virtual asset service provider (VASP).
According to UnionBank this makes them the only liscenced universal bank in the Philippines to offer virtual asset exchange services.
With the VASP license, UnionBank will be able to tap into new markets and opportunities, explore new ways of addressing evolving client needs.
The adoption of blockchain technology has been integral to UnionBank’s future-proofing strategy, and the Bank has been actively exploring potential use cases, including cryptocurrencies, to adapt to evolving customer needs and financial trends. In 2019, the Bank launched the country’s first bank-operated, two-way virtual currency ATM located in its digital branch “The ARK” in Makati City, which allows users to buy and sell cryptocurrencies.
Drawing upon the insights gained from the virtual asset ecosystem, the Bank can discover additional applications for blockchain technology that extend beyond virtual assets.
Through exploring various possibilities such as tokenized collaterals, tokenized deposits, and the implementation of tokenization in trade finance and supply chain financing, blockchain technology has the potential to revolutionize customary banking processes, thereby bolstering efficiency, transparency, and accessibility.
“This is a testament to the pioneering effort of the [Emerging Technology] team and the spirit of innovation by UnionBank,”
said UnionDigital Bank President and CEO Henry Aguda .
“Strategically, this will pay off in the next coming years especially when a lot of investors are going into blockchain and tokenization.”
The initiative aligns with the Bank’s “Tech-Up Pilipinas” advocacy, aimed at advancing digital literacy among Filipinos and enhancing financial inclusion and technological empowerment in the country.
Featured image credit: Edited from freepik