Union Bank of Philippine Predicts Investors Will Hold ‘5% Assets in Crypto’ In 5 Years

The Union Bank of Philippines also known as the UnionBank aims at capitalizing on the global growth of crypto adoption and offering its investors a stake in digital assets.

Bitcoin In The Philippines

As per a report from Bloomberg, the head of UnionBank’s blockchain and application programming interface group, Cathy Casas stated that presently on average every Philipino investor holds about 1% – 2% of their personal assets in crypto assets like Bitcoin.

She expects the same figure to rise to 3% – 5% within the next 5 years.

Although the governor of the Philippine Central Bank, Benjamin Diokno did display some apprehension when it came to cryptocurrencies. According to him, they tend to be very vulnerable to illicit activities as well as pose a danger to the financial system.

But Casas stated in an interview that this move is a way to future proof the banking process of UnionBank.

If successful, this would not be the first time The Union Bank of the Philippines would have dabbled with blockchain technology. Three years ago the bank was the first Filipino bank to issue and transact with its stablecoin called PHX. 

Pegged to the currency of the Philippines, the Philippine Peso, the stablecoin served as both a store of value and a medium of exchange.

Metaco and IBM

The UnionBank selected Metaco and IBM to enable its digital custody operations. One of the leading providers of security-critical software and infrastructure to the digital asset ecosystem, Metaco said that the Bank will be implementing its digital asset management services.

With $15 billion worth of AUM, the bank aims to leverage METACO Harmonize, the company’s digital asset orchestration system to manage operations. 

UnionBank will also be deploying its services on IBM Cloud, to leverage the confidential computing capabilities of IBM’s digital asset infrastructure.

About the announcement, Henry Aguda, UnionBank’s Senior Executive Vice President and CTOO said:

“We have the passion for meaningful and sustainable reinvention. We value our strategic partners, like METACO, and collaborate with them in an alliance that is meaningful in pursuit of a common vision. And for UnionBank, that common vision is customer-centricity driven by emerging technologies and innovation”