Stables to Facilitate Remittances Between Australia and The Philippines

Stables, an Australian firm specialising in digital wallet and payment solutions, has announced the introduction of international remittance services, catering primarily to the financial exchange between Australia and the Philippines.

Stables’ clientele, who are spread across more than 130 countries, will be enabled to transmit funds in either Australian Dollars or Philippine Pesos to a network of over 140 million recipients across the two nations, with the entire process underpinned by stablecoin technology.

Stables is entering the market against the backdrop of the Philippines status as a key destination for remittances within Southeast Asia, receiving over US$40 billion dollars annually, a substantial portion of which — approximately US$5.76 billion — originates from Australia.

The Philippines has seen a marked trend towards digitisation in financial transactions, largely due to the fact that approximately 44% of its adult population does not have access to traditional banking services, thereby fostering an environment ripe for the adoption of digital and e-wallet solutions like Gcash.

The timing coincides with a significant rise in the market capitalisation of stablecoins, which reached new heights in March 2024, surpassing the US$140 billion mark. This surge underscores a growing confidence in the potential of stablecoins to facilitate transactions that are not only secure and cost-effective, but also swift and reliable.

Erez Rachamim

Erez Rachamim, the Co-Founder and CEO of Stables, commented on the development, noting it as a pioneering move in Australia for employing stablecoins in remittance channels, and adding,

“This is the first time in Australian history that a company has embedded stablecoins in remittance rails with both domestic jurisdictions covered to deliver a payload with no middlemen, intra-day with sub 1% fees, we cannot wait to bring feature parity to the Philippines by May 2024.”

Erez further emphasised the transformative impact of stablecoins in the remittance industry, presenting them as a vital means for individuals to send financial support to their families. He highlighted,

“Our users can now send Philippines Pesos or Australian Dollars from their stablecoin balance directly into any local bank account or eWallet, without the need for the other party to have a Stables wallet or know that the funds started as a digital asset on the blockchain.”

In 2023, Stables established key partnerships, notably with Mastercard, to introduce a virtual prepaid card in Australia, enabling users to spend their stablecoin balances more widely.

Established in February 2021, Stables’ mission focuses on leveraging stablecoin technology to make financial services more accessible and equitable, particularly in emerging markets. Despite facing challenges in wider acceptance and adoption, the company says it is committed to bridging these gaps as it ventures into new international markets in 2024.

Featured image credit: Edited from Freepik