Under BSP’s Regulatory Sandbox

Executive Summary

PHPC is a fiat-backed stablecoin engineered to improve the efficiency and stability of digital transactions. This whitepaper outlines the foundational principles, technological framework, and economic models that underpin our stablecoin. It highlights the coin’s utility in trading, cross-border payments, and merchant transactions. By leveraging blockchain technology, we aim to provide a transparent, secure, and efficient digital currency that facilitates transactions in a fast and cheap manner and one that addresses the volatility issues plaguing conventional cryptocurrencies.

What are Stablecoins?

Stablecoins are digital currencies pegged to a “stable” reserve asset such as fiat currencies (i.e USD) or commodities (i.e. gold). They are designed to reduce volatility relative to unpegged cryptocurrencies like Bitcoin, providing stability to users.

What is PHP-backed Stablecoin (PHPC)?

PHPC is a stablecoin and will be pegged to the Philippine Peso, with a target value of 1 PHPC to 1 PHP.

Who is the issuer of PHPC?, a BSP regulated entity, is the issuer of PHPC. is a licensed Virtual Asset Service Provider (VASP) and Electronic Money Issuer (EMI).

What are the features and functionalities of PHPC?
a. Use cases of PHPC

i. Domestic & Cross-Border Payments

PHPC will be used to facilitate quick and cost-effective domestic cross-border transactions, eliminating the delays and high fees associated with traditional payment methods. Users can transfer value globally within minutes, without the need for intermediaries and reducing transaction costs. This is especially valuable for remittances and business payments, where traditional methods can be slow and expensive. The transparency of blockchain technology also ensures that transactions are easily traceable and verifiable. Furthermore, the stablecoin's stability ensures that the value transferred remains consistent, avoiding the fluctuations common with other cryptocurrencies.

ii. Trading

Coins will be listing PHPC pairs, allowing users to trade with other cryptocurrencies. PHPC offers traders a stable asset to hedge against market volatility, providing a reliable store of value during market fluctuations. By using PHPC, traders can quickly move in and out of volatile positions without incurring the risk of significant price changes. This stability is particularly beneficial in highly volatile markets, allowing traders to lock in profits or minimize losses. Its integration with major exchanges ensures liquidity and ease of access.

iii. Merchant Payments

Merchants can accept PHPC as a payment method, offering their customers a stable and secure way to transact without the risk of value loss due to cryptocurrency volatility. This allows businesses to price their goods and services in stablecoins, providing consistency in revenue. Coins plans to integrate with existing payment systems and point-of-sale devices to ensure that merchants can easily adopt and manage stablecoin payments. Customers benefit from the ease of use and the added security of blockchain-based transactions. Additionally, PHPC will have lower transaction fees compared to credit card payments and can result in cost savings for merchants.

b. Benefits of Using PHPC

Efficient Transfers and Payments

Stablecoins can be transferred quickly and efficiently across borders. It is a perfect option for international payments and remittances. Via PHPC, Coins can facilitate instant transactions, allowing for users to access their funds immediately. This could help to reduce the costs and inefficiencies associated with traditional local and cross-border payments, while also providing greater security and transparency.

Reduced Volatility

A stablecoin pegged to the Philippine Peso would provide a stable and secure store of value, reducing the volatility and uncertainty associated with other cryptocurrencies. This would make it easier for individuals and businesses to use cryptocurrencies for everyday transactions, such as remittances and payments.

Security and Transparency

Built on blockchain, stablecoins offer high levels of security through cryptographic techniques. Each transaction is recorded on a transparent and immutable ledger, ensuring accountability and traceability. Regular audits and compliance with regulatory standards further enhance trust and security, making stablecoins a safe option for digital transactions


Unlike traditional financial systems that operate within set business hours, stablecoins are available 24/7. This continuous availability allows users to transact at any time, providing unmatched convenience and flexibility. Whether it's sending money across the globe or making a purchase online, stablecoins offer round-the-clock access to financial services.

Financial Inclusion

Stablecoins provide access to financial services for individuals and businesses that are unbanked or underbanked. With just a smartphone and internet connection, users can send, receive, and store value without needing a traditional bank account. This inclusivity empowers people in developing regions and enhances global financial accessibility.

c. PHPC is backed by collateral reserves at 100%

PHPC would be backed by an initial PHP reserve pool pledged by Coins. PHP collateral will be 100% backed by a basket of assets consisting of cash, time deposits and short-term money market instruments.

d. Consensus Mechanism


PHPC will be issued on the Polygon Blockchain, a Layer 2 scaling solution for Ethereum that offers high throughput, low transaction fees, and fast confirmation times. Polygon's consensus mechanism is a fork of the proof-of-stake(Pos) algorithm, which allows consensus to be reached whenever a new block is added to the blockchain.

In the PoS checkpointing mechanism, validators are responsible for checkpointing blocks on the Ethereum mainnet, ensuring their security and finality. This consensus mechanism provides a high level of security and scalability while maintaining decentralization and censorship resistance.

The Polygon network has undergone rigorous security audits by reputable firms to identify and mitigate potential vulnerabilities. Furthermore, Polygon offers reliability through its high uptime and availability, with a proven track record of maintaining network stability even during periods of high congestion or transaction volume.


PHPC will also be issued on the Ronin network. Ronin is a Layer 1 blockchain network created by Sky Mavis, and is optimized for near-instant transactions and negligible fees focused for gaming. Ronin uses a Delegated proof-of-stake(DPoS) algorithm. In the DPoS checkpointing mechanism, validators are responsible for checkpointing blocks on the Ronin mainnet, ensuring security and finality.

Compared to the traditional PoS algorithm, the Ronin blockchain selects a set of 22 validators, which includes 12 Governing Validators, and 10 Standard Validators chosen among the Validator Candidate with the highest votes (staked amount). The Ronin network has implemented rigorous internal security measures to prevent future attacks. All code has been fully reviewed and optimized, with security experts auditing the entire architecture.

e. Stabilization Mechanism

PHPC stablecoin employs a stabilization mechanism rooted in a fiat-collateralized approach to ensure the stability of its value. One unit of tokenized fiat currency (PHPC) is at all times 100% backed by a basket of assets consisting of cash, timed deposits and short-term money market instruments. This ensures that the value of PHPC remains stable and pegged 1:1 to PHP, providing users with confidence in its value and reliability.

What are the associated fees with using PHPC?

During the sandbox period, only network fees will be incurred when using PHPC.

What are the risks associated with using PHPC?
Identified Risks

1. Counterparty Risk

Stablecoins backed by fiat currency held in banks are exposed to counterparty risk. If the bank holding the collateral fails or becomes insolvent, there is a risk of loss of funds. This could happen due to mismanagement, fraud, economic downturns, or regulatory actions.

In the event of a bank failure, stablecoin holders may face challenges in redeeming their stablecoins for their underlying fiat currency. Even if the stablecoin issuer has a claim to the bank's assets, the process of recovering funds can be complex and time-consuming, potentially resulting in losses for holders.

2. Liquidity Risk

PHPC runs the vulnerability of runs, whereby a sudden spike in redemption requests (triggered by price falls, rumors of instability or concerns about underlying asset quality) results in a ‘fire sale’ of the assets backing PHPC. This would result in Coins’ custodian bank having insufficient PHP available upon redemption, which prevents us from meeting future redemption requests in full. This risks further outflows as investors become concerned that the issuer may be unable to meet future redemption requests in full.

3. Operational Risks

PHPC, just like other stablecoins and crypto-assets, are susceptible to operational risks, including fraud and cyber risks. These risks arise from a number of sources, including the opacity and complexity of the crypto ecosystem, the widespread use of third-party service providers such as exchanges and custody services, and a lack of recourse for lost or stolen crypto-assets.

4. Layering

Stablecoins and cryptocurrencies have been known for layering (i.e. money laundering), given anonymity of peer-to-peer (P2P) transactions and complexity of monitoring on-chain transactions.

5. Smart Contract Risk

Stablecoins implemented on blockchain platforms rely on smart contracts for their operation, which are susceptible to technical vulnerabilities, bugs, or exploits. Smart contract bugs, coding errors, or vulnerabilities in the underlying blockchain protocol can result in the loss or theft of funds.

Exploitation of smart contract vulnerabilities, such as reentrancy attacks, unauthorized access, or manipulation of contract logic, can lead to financial losses and undermine the trustworthiness of stablecoins.

Proposed Countermeasures
1. Counterparty Risk Mitigation

We shall diversify our banking partners to reduce reliance on a single institution. We will also implement stringent due diligence and risk assessment procedures when selecting banking partners. Coins’ team will ensure custodian banks are well capitalized, maintaining a healthy CET1 and RRR over its historical operating periods.

Additionally, transparent governance arrangements (i.e. regular independent audits) can provide investors with confidence in the issuer’s assertions regarding the value and liquidity of its reserve assets. Coins will schedule periodic Proof-of-Reserves to maintain retail and institutional trust, while providing users with legal certainty around their redemption rights, including in the event of Coins’ insolvency.

2. Liquidity Risk Mitigation

To mitigate the risk of a liquidity crunch, we will maintain sufficient reserves of the underlying asset (PHP) to meet redemption requests, even during periods of high demand. We will also diversify the types of liquid assets, within the guidelines set forth by BSP, backing the stablecoin to reduce concentration risk and enhance liquidity.

3. Operational Risk Mitigation

We continually implement robust cybersecurity measures, such as encryption, firewalls, and intrusion detection systems, to protect our platform against cyber threats. We will also conduct regular testing and security audits to identify and remediate vulnerabilities and weaknesses.

4. KYT & Vendor Monitoring

We will leverage on our existing Anti-Fraud (AF) and AML/CFT monitoring systems to ensure circulating PHPC is not used for any fraudulent activities. To ensure the robustness of our security measures, we are utilizing Elliptic, a tool used to track and screen virtual assets that are moving on the blockchain to ensure that we stay ahead of any security breaches and mitigate sanction risks. These transactions will be reviewed periodically (i.e. quarterly).

For ongoing daily monitoring, we are well equipped with our current processes to ensure that all related PHPC transactions are mapped with a corresponding AMLC transaction code and be subjected to the Financial Action Task Force (FATF) guidelines. For Travel Rule, Coins’ have an in-house blacklist and we employ the use of Kaisercheck to ensure we avoid users on sanction lists.

5. Smart Contract Risk Mitigation:

Comprehensive security audits and robust code review processes are essential to mitigate smart contract risks. We will continue to conduct thorough security audits and code reviews by reputable third-party auditors to identify and mitigate smart contract vulnerabilities. We will also implement multi-signature or multi-factor authentication mechanisms to enhance smart contract security and reduce the risk of unauthorized access.

What are the rights of the users?

PHPC token holders are allowed to buy, sell, or convert their PHPC tokens anytime of the day. also encourages all its users to provide feedback or raise their complaints via the following channels:

a. Email us at

b. Call us at (+63) 917 118 6340 or (02) 882 26467

c. You can also file a complaint through the Consumer Affairs of the Bangko Sentral ng Pilipinas

Our support team is available to all our users to address all inquiries, provide assistance and guidance for any PHPC-related issues and concerns.

What are the obligations of regarding the use of PHPC?

It is the obligation of to fulfill the orders of PHPC users whether to buy, sell, convert, or to trade their PHPCs.

At the end of the BSP’s Sandbox Testing period, is obligated to reimburse the remaining PHPC in circulation. There shall be a 100% reimbursement for all PHPC still in circulation.