G-Xchange Inc., the company behind the mobile wallet GCash, and Macodimarc Technology Corp., which operates Pluang PH, have been allowed by the Securities and Exchange Commission (SEC) to test their platforms under the agency’s Strategic Sandbox (StratBox).
StratBox is a controlled environment that allows companies to try out financial technology tools while receiving some regulatory relief. It aims to support innovation but still requires companies to protect users and follow certain rules. The sandbox allows some rules to be lifted or adjusted for the test period.
Pluang PH will test a mobile app that allows retail investors in the Philippines to buy and sell selected US stocks. These stocks, which must be approved by the SEC, will come from either the New York Stock Exchange or the Nasdaq. The pilot program will run for six months and include up to 1,000 qualified users.
GCash, on the other hand, will test a feature called GStocks Global. This will let users invest in global stock markets. The pilot period will last for 24 months and include up to 2 million users.
Monitoring and possible rollout
The SEC said both GCash and Pluang PH must submit progress reports that include test results, user feedback, and any problems. If either company wants to change the way the test is being run, it must get approval from the SEC first.
The sandbox program can end in one of three ways: the company finishes the test, the SEC stops it early, or the company chooses to leave. If the results are positive, the companies might be allowed to offer the services to the public.
“The sandbox helps us strike a balance between innovation and investor protection by giving companies space to test new tools under close supervision,” the SEC said.
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