PASIG, Philippines, November 3, 2023 /PRNewswire/ — Union Bank of, pioneer in banking innovation The Philippines (UnionBank) recently achieved another industry first after obtaining a certificate of authority from the Bangko Sentral ng Pilipinas (BSP) to operate as a virtual asset service provider (VASP). This makes UnionBank the world’s first and only universal bank. The Philippines, authorized to offer virtual asset exchange services. UnionBank celebrated this historic achievement during the license handover ceremony to UnionBankers last September 27 at UnionBank Plaza in Pasig City.
Through the VASP license, UnionBank will be able to tap into new markets and opportunities, explore new ways to meet changing customer needs like never before, and stay at the forefront of technological advancements ensuring its competitiveness in the digital financial space. Combined with its commitment to innovation, regulatory compliance and customer focus, the license enables the Bank to further prepare for the future, to serve and lead in an evolving financial landscape.
The adoption of blockchain technology is an integral part of UnionBank’s future strategy, and the bank is 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 two-way virtual currency ATM, located at its digital branch “The ARK” in Makati Citywhich allows users to buy and sell cryptocurrencies.
By leveraging the knowledge gained from the virtual asset ecosystem, the Bank can discover additional applications for blockchain technology that go beyond virtual assets. By exploring various possibilities such as tokenized collateral, tokenized deposits and the implementation of tokenization in trade finance and supply chain finance, blockchain technology has the potential to revolutionize usual banking processes, strengthening thus efficiency, transparency and accessibility.
“This is testament to the pioneering effort of [Emerging Technology] UnionBank’s team and spirit of innovation,” said UnionDigital Bank President and CEO Henri Aguda during the ceremony. “Strategically, this will pay off in the coming years, especially when many investors jump into blockchain and tokenization.”
“With this license, we are once again ready to break molds, set trends and rewrite the rules,” said Cathy Casas, UnionBank Senior Vice President and Head of Emerging Technologies Group. “That’s exactly what innovation is: pushing the boundaries, venturing into the unknown, courageously venturing into territories yet to be explored and taking on challenges that others may not understand not fully.”
The license will also help strengthen the Bank’s customer focus, particularly its ability to provide innovative solutions that improve the overall financial well-being of its customers. Additionally, the bank’s expanded offerings through the license can provide customers with more comprehensive financial experiences, covering a wider range of blockchain-powered financial services, such as lending, cross-border payments and other financial products. based on smart contracts.
“This is a call for a laser focus on the target that only we see, and through the twists and turns and ups and downs of these avenues, we will persist and persevere with our only North Star, which is uplift lives and realize dreams,” said UnionBank Vice Chairman Dr. Just A. Ortiz.
The VASP license positions the Bank as a responsible player in the digital finance ecosystem, particularly in terms of monitoring and compliance. UnionBank’s focus on monitoring is not simply a regulatory requirement, but a commitment to maintaining customer and industry trust, as robust monitoring mechanisms help ensure the legitimacy of virtual assets and prevent activities illicit. The Bank’s commitment to comply with regulatory standards and proactively work with the BSP to shape the future of digital finance in The Philippines can serve as an example for others to follow.
“This achievement highlights the importance of doing something that has never been done before, of not being reckless and, above all, daring to be bold, of not being afraid to go for it,” said Vice -Executive Chairman and Chief Technology and Operations Officer of UnionBank. Denis Omila emphasizing that obtaining a license by the Bank is relevant to the entire banking sector.
With this milestone, UnionBank is setting new standards and redefining what it means to be a bank in the digital age through collaborations and partnerships that define progress for a better future. The initiative aligns with the Bank’s “Tech-Up Pilipinas” advocacy, aimed at advancing digital literacy among Filipinos and strengthening financial inclusion and technological empowerment in the country.
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SOURCE Union Bank of The Philippines
