UnionBank of the Philippines has begun quietly deploying a cryptocurrency trading feature within its mobile banking app, and early feedback from Web3 community leaders suggests growing optimism about the intersection of traditional finance and blockchain-based assets. The feature, titled “Buy/Sell Crypto,” is currently accessible to a limited group of users and requires them to complete a Client Suitability Assessment to gauge financial literacy, investment experience, and risk tolerance.
During a recent BitPinas webcast, thought leaders Eliezer Rabadon of DvCode and Jopet Arias of TLYR Collective voiced support for the bank’s latest move into digital assets. Both, as current UnionBank users, indicated that upon reading the news, they immediately checked their accounts to see if the new feature had been activated for them. Though not yet included among the initial users, they conveyed confidence that the full rollout would soon follow.
Corporate and Creative Use Cases in View
Rabadon, while acknowledging that his access to the crypto feature was pending, said he was hopeful that UnionBank would also enable the function for corporate accounts. He shared a potential use case where companies might consider converting funds into cryptocurrency ahead of scheduled payroll dates. However, he also cautioned that such a strategy could be risky in the event of a market downturn, noting the volatility inherent to crypto assets.
Arias, meanwhile, discussed the implications of UnionBank’s crypto integration for artists and collectors in the NFT space. He explained that many collectors are not yet familiar with decentralized wallets or blockchain protocols, making the purchase of NFTs cumbersome and time-consuming. By embedding crypto services within a conventional banking app, UnionBank could dramatically streamline this process. Arias further elaborated that NFT functionality is often used to authenticate physical artworks, such as paintings, and that easier access to crypto would simplify transactions for both artists and collectors.
Clarity Sought on Blockchain Compatibility and Operational Model
Rabadon expressed interest in learning more about the technical underpinnings of the new feature, particularly regarding which blockchain networks UnionBank intends to support. He noted that if Ethereum were the chosen network, users might face high gas fees. Additionally, he was curious whether UnionBank planned to follow the operational frameworks of existing licensed crypto platforms or if it would pursue a distinctive model.
Despite these questions, Rabadon conveyed enthusiasm about the initiative and even suggested revisiting the topic in a future webcast to delve deeper into the technical elements of UnionBank’s crypto strategy.
Selective Access and Regulatory Context
The bank’s rollout strategy involves offering the crypto trading feature only to users who meet predefined criteria based on their suitability assessment. Those who do not initially qualify are notified and encouraged to reapply after a six-month period. This cautious approach aligns with regulatory expectations, especially given the current moratorium on new Virtual Asset Service Provider (VASP) licenses from the Bangko Sentral ng Pilipinas (BSP). However, UnionBank had previously secured BSP’s approval to engage in crypto-related services in 2023, positioning itself ahead of many competitors in the sector.
UnionBank Seen as a Catalyst for Crypto Adoption
Christine Erispe, a core member of the Web3 group ETH63, commented during the webcast that UnionBank’s crypto-friendly stance represents a significant win for the country. She emphasized that a major financial institution with a universal banking license moving into digital assets sets a strong precedent for broader cryptocurrency adoption in the Philippines.
As UnionBank moves forward with this phased rollout, the Web3 community appears to be watching closely, hopeful that this integration will bridge the gap between traditional banking and the decentralized future.