Union Bank of Philippines and Hong Kong-based crypto custodian <a href="https://hextrust.com/">Hex Trust</a> are entering an agreement to pilot a digital asset custody service for the bank’s customers.
<h2>Hex Trust to Assist Union Bank of Philippines in Entering Digital Asset Market</h2>
According to a recent press release, Hex Trust will initiate an internal pilot for the bank’s employees ahead of launching a fully commercialized digital asset custody service. The entire exercise will be supervised by the Philippines’ central bank -- Bangko Sentral ng Pilipinas. 

The Philippines has an active <a href="https://www.cryptoknowmics.com/news/philippines-based-moneybees-launches-three-crypto-exchange-outlets/">crypto market</a> and interest in virtual currencies is on the rise. This could partly be attributed to the need for an effective remittance system, as the country receives over $2 billion in overseas payments every month. 

Another factor fuelling appetite for cryptocurrencies is the large number of people excluded by traditional banking. Data from Bangko Sentral ng Pilipinas suggests that 70% of citizens remain unaccounted for by banking institutions. Calvin Shen, head of sales and business development at Hex Trust, told a media outlet that this situation can be remedied by crypto assets. 

“Digital assets can be used as an alternative mode of payment to the underserved, and can drastically cut down transaction costs on remittance services,” he noted.

Meanwhile, Hex Trust’s CEO Alessio Quaglini said that the partnership is indicative of institutions taking note of increasing retail demand:

“There are growing levels of both retail and institutional interest in [digital assets] within Southeast Asia as well as increasing banking level adoption. This partnership demonstrates Hex Trust’s ability to provide their services to one of the leading bank-grade custody platforms in the region.”
<h2>Fintech Firms Find More Opportunities to Innovate in Southeast Asia</h2>
Data from Statista highlights that the <a href="https://www.cryptoknowmics.com/news/ripple-friendly-firms-to-launch-digital-banking-apps-in-switzerland-and-philippines/">Philippines</a> has one of the highest numbers of crypto users in Southeast Asia. Quaglini believes there are many factors contributing to this trend such as a digitally savvy younger population and instant access to online tools. 

He also views regulatory frameworks in the region as comparatively less mature than those in the US or Europe. In Quaglini’s words, “this provides a significant opportunity for Southeast Asia to attract new capital, blockchain companies, and talent.”

Furthermore, it helps fintech companies and digital asset-related businesses freely experiment with their services. Quaglini also claims that blockchain gaming ventures like Axie Infinity -- which surpassed $1 billion in sales -- are helping people come out of poverty:

Countries in Southeast Asia are also well aware of crypto’s reach. In June, Business Insider reported that the Philippines and Vietnam were considering <a href="https://www.cryptoknowmics.com/news/finders-poll-shows-vietnam-indonesia-and-india-lead-crypto-adoption/">crypto-friendly</a> regulations to bring the new asset into the mainstream. The Philippines, in particular, was said to be planning a separate exchange for cryptos.

Union Bank of Philippines Partners With Hex Trust to Pilot Custody Service

Union Bank of Philippines and Hong Kong-based crypto custodian Hex Trust are entering an agreement to pilot a digital asset custody service.

Divya is a postgraduate from Jawaharlal Nehru University specializing in International Relations and a professional writer with more than 5 years of experience writing for the web. She is an avid reader interested in the global financial system and the effects of decentralization. At Cryptoknowmics, she hopes to deliver clear and understandable content to inform readers about the latest events in the crypto sector.

Union Bank of Philippines Partners With Hex Trust to Pilot Custody Service

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