US Dollar-backed stablecoin USDC gets integrated with local payment networks in Brazil and Mexico via Circle partnerships
In a significant move to enhance cross-border transactions and boost the appeal of the US dollar-backed stablecoin, USDC, in the Latin American market, Circle has integrated the digital currency with leading banks in Brazil and Mexico.
This integration marks a major milestone for Circle, as USDC is now available in Brazil and Mexico through partnerships with global payment infrastructure providers like Corpay, FIS, and others.
With this development, businesses in Mexico and Brazil can access USDC directly from local financial institutions without the need for international wire transfers. This streamlined process is expected to speed up payment processing and reduce costs associated with conventional remittance or bank transfer services.
Corpay’s collaboration with Circle enables companies in Brazil, Mexico, and over 80 countries to access USDC within Corpay’s cross-border pay-in and pay-out infrastructure. This integration provides clients with digital wallets powered by Circle, allowing immediate funding and on-chain settlement along with seamless conversion between USDC and local fiat currencies.
The benefits for businesses in Brazil and Mexico are numerous. USDC offers faster and near-instant payments, lower costs, increased efficiency and transparency, access to a regulated stablecoin, and broad global connectivity. These features facilitate international supplier payments, payroll, and merchant transactions.
Moreover, the integration addresses one of the main challenges crypto exchange platforms face in onboarding users, which is the complexity of having to create a crypto wallet and transact using crypto addresses. Now, businesses and individuals can buy USDC using Brazilian Reais (BRL) and Mexican Pesos (MXN) in a simple, fiat on-ramp process that is suitable for non-crypto native users.
The integration also extends USDC's reach, as it is now available via national real-time payment systems (PIX in Brazil and SPEI in Mexico) in those countries. This move is expected to further boost USDC's appeal, given that 95% of Brazil's $640 billion in annual foreign trade in goods takes place in US dollars, and Mexico exchanges more than $800 billion in annual goods and services trade.
Circle believes that the USDC's increased accessibility and integration will boost its appeal in the Latin American market, making it a more attractive option for businesses in the two countries and the region. The company aims to continue expanding its network, bridging traditional finance and digital currency networks, offering companies a scalable and compliant way to use USDC for faster, cheaper, and more flexible payments in local and international contexts.
The announcement was made in a blog post on Circle's website. Businesses in Mexico and Brazil can now use USDC for corporate purposes and offer it as an option to their retail customers. This integration is set to revolutionise the way businesses conduct cross-border transactions, offering a more efficient, cost-effective, and transparent solution for the future.
News of Circle integrating USDC, a US dollar-backed stablecoin, with leading banks in Brazil and Mexico has been lauded as a significant move in finance. This integration allows businesses in these countries to access USDC directly from local financial institutions, streamlining the payment process and reducing associated costs. This development might revolutionize cross-border transactions in the region, offering a more efficient, cost-effective, and transparent solution for businesses.
