Circle has integrated the USDC stablecoin, Peg to the US dollar, into the national real-time payments systems of Brazil and Mexico.
USDC is now accessible through the banking systems of both countries, Circle said on September 17. The integration allows businesses to directly access USDC from local financial institutions without requiring international transfers. Companies in Brazil and Mexico can use the stablecoin for business purposes and offer it to individual customers.
“Eliminating international transfers can dramatically reduce the time it takes to access USDC – from days to just minutes, freeing up Capital trapped in lengthy payment processes,” Circle emphasized.
This integration enables USDC to be converted into local currencies such as Brazilian Real (BRL) and Mexican Peso (MXN). This also means that the digital USD is integrated into Brazil's PIX and Mexico's SPEI payment systems.
In 2020, Brazil’s central bank launched PIX, an instant payment system that allows transactions to be made 24/7 using only a phone number. As of August 2024, the system had more than 168 million users. Similarly, Mexico’s SPEI allows users to transfer money between banks in real time via mobile apps or online banking. The system has been in existence for 20 years and processed nearly 3.3 million transactions in 2023.
Circle ’s expansion into Latin America is aimed at deepening its involvement in cross-border transactions. According to Circle, remittances from the U.S. to Mexico will reach $63 billion in 2023, up 7% from 2022 and accounting for 4% of the Mexican economy.
Mexico is also one of the United States’ largest trading partners, with more than $800 billion in goods and services exchanged annually. Meanwhile, about 95 percent of Brazil’s $640 billion in annual merchandise trade is conducted in U.S. dollars, including about $120 billion in direct trade with the United States.
According to defillama , USDC currently has a Capital of $35 billion, behind Tether with a Capital of $118 billion.
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