Remitly Stablecoin Remittance In The Philippines

Remitly is advancing the ability to deploy remittance using stablecoins.

A new partnership between Remitly and Coins.ph has been announced to focus on improving remittance transfers and flows heading to and from the Philippines.

Making use of stablecoin technology and emerging infrastructure, the world's top 5 remittance companies is collaborating with the leading Philippines exchange to lower the overall cost of sending money to friends and family.

The main focus of this is to incentivise more citizens and individuals on working visa's (around 4 million) across both the U.S. and Canada to use Remitly for stablecoin cross border remittance, which according to the announcement accounts for 45% of all remittances.

A Lower Stablecoin Remittance Fee

The way the announcement describes the flow of funds is the following:

• A Filipino worker gets their wages paid in $USD and (deposits cash to a local agent if cash and) sends X amount via their Remitly account with recipient instructions

• Remitly then converts the fiat deposited into USD backed stablecoins (like $USDC) and sends this via a blockchain network (Solana, Ethereum, etc.) to an official Coins.ph wallet address

• The exchange receives the stablecoin remittance balance and converts it to local a PHP stablecoin (PHPC stablecoin) balance and pushes into an e-PHP wallet account

• The nominated recipient / account owner is then able to transfer to their bank account

This makes it for a more effective stablecoin-based remittance process, ensuring that funds are transferred faster than traditional timeframes (over several days). Importantly, the cost for the stablecoin remittance company is reduced with a gradual lower stablecoin fee for the sender.