Circle’s USDC in Brazil and Mexico Now Available to Businesses Via Banking System

As a seasoned analyst with over two decades of experience observing the dynamic world of finance and technology, I find Circle’s strategic move to integrate its USDC stablecoin with payment systems in Brazil and Mexico through leading banks to be a shrewd one. This is particularly true given the growing popularity of stablecoins for everyday finances in emerging markets like Latin America.

Through partnerships with prominent banks, Circle has linked its USDC stablecoin with payment networks in Brazil and Mexico for business clients, as announced on Tuesday.

According to data from CoinDesk, Circle’s USDC, the second most popular stablecoin after Tether’s USDT, boasts a market capitalization of $35.50 billion and a 24-hour trading volume of approximately $6.51 billion.

Just recently, Castle Island Ventures and Brevan Howard’s analysis indicated that stablecoins have become more frequent in daily transactions like savings, currency swaps, and international money transfers, particularly in developing economies such as Brazil.

As an analyst, I’ve noticed a surge in the adoption of stablecoins within the Brazilian market, with major regional companies initiating projects in this sector. For instance, Mercado Pago, the digital banking arm of Mercado Libre (MELI), has recently launched its own stablecoin, the Meli Dollar, which is pegged to the U.S. dollar.

Tether, issuer of USDT and a key competitor for Circle in the stablecoin market, has had prior experience with both Brazil and Mexico. In 2022, it facilitated the exchange of USDT to Brazilian real through an arrangement with SmartPay, a Brazilian crypto service provider. Additionally, during the same year, Tether introduced its MXNT token, which is tied to Mexico’s peso.