Recent data from GCash showed an impressive surge in stock market users of 142 percent to 1.2 million since 2023.
But that was eclipsed by a staggering 2.7 million GCrypto users, more than double stock traders in its portfolio and a 131 percent growth spike since the service launched around the same time as GStocks.
That’s also roughly 40 percent larger than the entire number of stock market traders in the country, which the Philippine Stock Exchange estimated at around 1.9 million last year.
And even that figure may be understated, as many Filipinos hold crypto accounts outside of GCash, which partnered with local trading platform PDAX.
What’s going on?
“Bitcoin and other crypto are just all over the news and Filipinos are quick to adopt new technology. May natural market din with OFWs [overseas Filipino workers],” Nicky Franco, Abacus Securities research head, told InsiderPH.
“But it’s not good for local equities because it draws liquidity away from the local market. It’s actually one reason, in my view, that the PSEi has underperformed in the past few years,” he added.
Stock prices flat, crypto values soar
When you look at the price gains, it’s easy to see why more Filipinos are choosing crypto over stocks.
Digital coins like Dogecoin and Bitcoin (BTC), whose hardcore fans regard as “digital gold”, have skyrocketed in the past two years.
The price of Bitcoin is now around $104,000 (P5.8 million), more than 500 percent higher than its level in early 2023 after a bear market.
The PSE index, meanwhile, started 2023 at around 6,500. On Wednesday, it finished at 6,551.81.
“PSE is relatively illiquid, which is a risk in itself, and the index has basically gone sideways for the past 12+ years,” Franco said. While frustrating, he added, it’s hard to blame traders who prefer crypto.
GCash deepens wealth services
GCash launched GStocks and GCrypto as part of a broader effort to diversify beyond payments.
Growth for stock trading has been rapid, with its user base now more than double that of the country’s largest stock brokerage house.
Although GCash does not provide a breakdown such as volume and active accounts, this was a strong signal the fintech giant is penetrating deeper into the retail investing market
“These innovations really just reflect GCash’s ability to democratize financial access and deepen customer engagement beyond payments,” said Juan Carlo C. Puno, chief financial officer of Globe Telecom, GCash’s largest shareholder with a 34 percent stake.
GStocks partnered with AB Capital Securities, a licensed broker of the Philippine Stock Exchange, to enable stock trading. GCash owns 24.5 percent of AB Capital and is in talks to acquire as much as half of the company, Globe said in its recent financial report.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
