USDC is now accessible via Brazil's PIX and Mexico's SPEI instant payment systems.
This breakthrough is expected to shorten international payment times and reduce costs, positioning USDC for broader adoption in key Latin American markets.
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USDC Connected to Brazil and Mexico’s Instant Payment Systems
On September 17, 2024, Circle, the issuer of the USD Coin (USDC), announced that USDC has been connected to the instant payment systems of Brazil and Mexico.
USDC is a stablecoin designed to track the price of the U.S. dollar. As of September 2024, it boasts a market capitalization of around $35 billion, making it the second-largest stablecoin globally, after Tether (USDT).
According to Circle, this integration allows access to USDC through Brazil's PIX and Mexico's SPEI payment systems. Corporations in both countries can now directly exchange local fiat currencies for USDC without converting to U.S. dollars through local financial institutions.
This means that local businesses can use USDC for operational purposes and offer it to their customers as well.
Circle's announcement also emphasized the significant time savings, noting that the traditional process of international wire transfers, which took several days, can now be reduced to mere minutes. This improvement dramatically increases capital liquidity.
Expanding Presence in Latin America
This integration is seen as part of Circle's efforts to expand the presence of USDC in Latin American countries with close economic ties to the United States.
Brazil's PIX, one of the systems connected to USDC, is a real-time payment system operated by the Central Bank of Brazil, boasting over 168 million users nationwide.
On the other hand, Mexico’s SPEI, also operated by its central bank, has been in operation for nearly 20 years. In 2023 alone, SPEI facilitated approximately 3.3 million transactions.
Mexico is one of the U.S.’s largest trading partners, with an annual trade volume exceeding $800 billion. Brazil, with an annual trade value of $640 billion, conducts 95% of its transactions in U.S. dollars.
By making USDC more accessible and affordable in these two nations, where cross-border trade often relies on the U.S. dollar, businesses are expected to benefit from reduced costs.
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