Circle Reports Significant Increase in Remittances Through USDC Stablecoin in Asia
Circle, a crypto issuer, has reported a significant increase in remittances flowing through Asia via its USDC stablecoin. USDC is a cryptocurrency pegged to the value of the U.S. dollar and has settled over $12 trillion in blockchain transactions since its introduction in 2018.
Asia-Pacific Region Leads in Digital Currency Value Received
The Asia-Pacific region makes up almost a third of the value of digital currency worldwide, according to Circle. In 2023, $130 billion worth of USDC flowed into Asia, with the region accounting for 29% of all global digital currency value received. This surpasses North America and Western Europe.
USDC Boosts Remittance Business in Emerging Markets
USDC has had a notable impact on remittance transfers in emerging markets like the Philippines. Circle has partnered with Coins.ph, an exchange in the Philippines, to capture some of the $36 billion annual remittance business.
Asia-Pacific: Young, Mobile-First, and Wallet-Ready
The characteristics of the Asia-Pacific region make it ideal for digital currency adoption. The report highlights that nearly half of the region’s online population is already using a digital wallet, and digital wallet penetration could reach 58% among Southeast Asia’s unbanked population by 2025.
USDC Closes Trade Finance Gap in Asia
The report claims that USDC is contributing to closing the region’s $510 billion trade finance gap by providing liquidity for cross-border remittances and credit. This is particularly beneficial in emerging markets with capital outflow restrictions.
Mainstream Businesses Embrace USDC
Various mainstream businesses, including payment companies, fintechs, and traditional banks, are embracing USDC for different purposes. The dollar’s global role positions USDC as a key player in the stablecoin space.
USDC Adoption Strong Outside of the United States
Despite the perception that USDC is primarily focused on the U.S., Circle CEO Jeremy Allaire estimates that 70% of USDC adoption comes from countries outside of the United States. Emerging and developing markets in Asia, Latin America, and Africa are experiencing strong progress in USDC adoption.
Circle Plans to Become a Publicly Traded Firm
Circle’s IPO filing indicates the company’s plans to become a publicly traded firm. However, details about the proposed price range and number of shares to be sold have not been disclosed.
Hot Take: USDC’s Growing Influence in Asian Remittance Market
Circle’s report highlights the significant increase in remittances flowing through Asia via its USDC stablecoin. The Asia-Pacific region leads in digital currency value received, surpassing North America and Western Europe. USDC is contributing to closing the region’s trade finance gap by providing liquidity for cross-border remittances and credit. Moreover, mainstream businesses are embracing USDC for various purposes. The adoption of USDC is strong outside of the United States, with emerging and developing markets experiencing rapid progress. Circle’s plans to become a publicly traded firm further demonstrate the growing influence of USDC in the cryptocurrency market.
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