Global Settlement Volume for Stablecoins Reaches $7 Trillion; Latin America Leads Adoption

The global settlement volume of stablecoins reached $7 trillion in 2021, according to CryptoPotato, which is nearly half of the $14 trillion settled by financial titans Visa and Mastercard. This underscores a transition towards digital currencies, specifically in Latin America, where they have integrated themselves into routine commercial transactions.

Stablecoins are ushering in an era of enhanced financial interoperability and more streamlined international trade. By rapidly adopting and integrating digital currencies into routine financial transactions, Latin America is at the forefront of this revolution. 51% of consumers in the region have used digital currencies to make purchases, with one-third reliant on stablecoins for routine transactions, according to a Mastercard survey. The substantial developer base in the region and the considerable population with limited access to conventional banking services are the primary factors propelling this extensive adoption.

Circle, a market leader in stablecoins, has been instrumental in facilitating this transition. Circle's adoption of USDC, a digital currency pegged to the dollar, has increased dramatically since its introduction in 2018, highlighting the expanding potential and growing acceptability of stablecoins in the financial sector. In order to improve its financial services, USDC is swiftly integrating with key actors in the fintech sector of Latin America. The largest e-commerce platform in the region, Mercado Libre, now offers digital dollars via USDC, which is regarded for its interoperability and transparency. Airtm's collaboration with the United States and the Venezuelan government to circumvent political barriers with USDC demonstrates the currency's potential in humanitarian assistance. Lemon, an Argentine fintech company, facilitates seamless access and transactions with USDC and local currencies for nearly two million consumers. Ripio, a leading proponent of cryptocurrency integration in the area, has implemented USDC rebates on its cards, thereby contributing to the normalization of digital currency in routine transactions. Credix is revolutionizing the credit market by connecting investors with exclusive opportunities in Latin America and facilitating streamlined transactions with USDC. The Colombian payments and savings application Littio integrates USDC and Euro Coin, providing a variety of savings options. The fact that Parfin provides a range of digital asset services to Brazil's largest financial institutions demonstrates the increasing institutional interest in digital currencies. An innovative remittance platform developed by Felix Pago facilitates transfers from the United States to Mexico through WhatsApp. Powered by USDC in collaboration with Mercado Libre, this platform improves cross-border transactions.