May 30, 2024 12:25
Circle, a global financial technology firm and issuer of theregulated stablecoin USDC, has disclosed its official entry into the Brazilianmarket. This strategic manoeuvre aims to offer USD-backed digital currency andinfrastructure to a region known for its burgeoning fintech landscape.
Collaborating with key local enterprises like BTG Pactualand Nubank, Circle intends to introduce digital asset products facilitatingswift, cost-effective, and round-the-clock access to USDC.
Expanding USDC Access in Brazil
This expansion coincides with a period of considerablefintech adoption, propelled by forward-looking policies such as the 2020 launchof the instant payment platform Pix, which boasts a user base exceeding 160million. Stablecoins presently dominate approximately 90% of cryptotransactions. Circle aims to enhance Brazil's financial ecosystem bycollaborating with innovative partners to democratize access to digital dollarsthrough USDC.
As part of its market entry strategy, Circle has partneredwith BTG Pactual, Latin America's largest investment bank, to serve as itsprimary USDC distribution channel in Brazil. This collaboration will enable BTGPactual to provide existing retail and institutional clients with access toUSDC, as well as onboard new clients seeking exposure to the digital currency.
The partnership will also furnish USDC with local bankingrail capabilities, facilitating swift and cost-effective minting and redemptionof digital dollars for businesses.
Since 2017, BTG Pactual has been at theforefront of financial market innovations, actively participating in the cryptospace. Our commitment to innovation led us to create Mynt, our own Cryptotrading platform. We are proud to be the first bank to issue a security tokenand a USD stablecoin in the world and also the first bitcoin fund by afinancial institution in Brazil, said André Portilho, Head Digital Assets atBTG Pactual.
Collaboration Impact in Brazilian Market
Building on its previous announcement of collaboration withNubank, a digital banking platform serving over 100 million customers inBrazil, Mexico, and Colombia, Nubank Crypto customers in Brazil are alreadyengaged in transactions involving USDC.
We are committed to making a positive impact in theBrazilian market and partnering with key stakeholders to empower businesses toparticipate in the global economy with greater ease and efficiency, saidJeremy Allaire, Co-Founder and CEO at Circle.
There are many powerfulopportunities on the horizon when Brazils fintech-forward ecosystem convergeswith the worlds most accessible dollar platform.
This article was written by Tareq Sikder at www.financemagnates.com.
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