Circle, the issuer of the USDC stablecoin, has expanded its reach by integrating USDC into Brazil and Mexico’s national real-time payment systems. This strategic move allows businesses and financial institutions in both countries to utilize USDC directly, eliminating the need for international wire transfers, which traditionally take days to settle.
With the integration, companies in Brazil and Mexico can seamlessly access USDC through local banking systems, streamlining corporate transactions and providing retail users access to the stablecoin. As Circle highlights, the ability to bypass international transfers reduces settlement time from days to mere minutes, freeing up capital and boosting efficiency.
This development also makes USDC accessible in local currencies, such as the Brazilian Real (BRL) and the Mexican Peso (MXN), through the integration of USDC with Brazil’s PIX and Mexico’s SPEI systems—both of which enable real-time, 24/7 transactions for individuals and businesses.
Brazil’s PIX, launched in 2020 by the central bank, has grown to over 168 million users as of August 2024. Mexico’s SPEI system, in operation for over two decades, processed around 3.3 million transactions in 2023, playing a key role in the country’s digital payments landscape.
The integration aligns with Circle’s broader strategy to increase USDC’s role in cross-border transactions, especially in Latin America, where remittances and international trade are significant economic drivers. In 2023, remittances from the U.S. to Mexico reached $63 billion, while Brazil’s trade, largely conducted in USD, totaled $640 billion, including $120 billion in direct trade with the U.S.
As stablecoins continue to rise in popularity, with a total market cap now reaching $170 billion, USDC holds a $35 billion market share, trailing behind Tether’s $118 billion. Circle’s Latin American expansion aims to capture a larger share of the cross-border payments market and further drive the adoption of stablecoins in everyday business and financial operations.