Stablecoin Surge in Latin America
Emmanuel Mugabo
Nov 12, 2024
As the first half of 2024 has shown, the demand for stablecoins across Latin America is surging. Bitso’s latest report1 highlights a remarkable trend: more than a third of digital currency purchases in the region are now dollar-pegged stablecoins, with USDC leading the charge. For millions, inflation, currency devaluation, and macroeconomic instability have emphasised the appeal of stable digital assets. Argentina stands out as a prime example, with six out of ten cryptocurrency purchases being stablecoins — a powerful indicator of how high inflation and the rapid devaluation of the peso are reshaping financial behaviours.
According to Circle’s State of USDC Economy report2, Latin America is emerging as a global fintech powerhouse. Stablecoins are playing an instrumental role in this growth, bridging economic divides and creating access to increased financial stability. One example of this is OpenTrade’s partnership with Littio, a Colombian neobank. Through this partnership, Colombian users can convert pesos into dollars, make everyday transactions, and even earn steady returns backed by U.S. Treasury Bills.
Stablecoins, and particularly USDC, are not only addressing the need for a secure store of value but are also creating access to safe, yield-bearing savings — a vital foundation for financial security. As Latin America embraces this innovation, stablecoins are paving the way for a more resilient and inclusive financial future, empowering individuals to protect their wealth and unlock new financial opportunities.
About OpenTrade
OpenTrade is an institutional-grade platform for on-chain and real world asset-backed lending and stablecoin yield products. Backed by investors including a16z Crypto and Circle, the OpenTrade platform has been built to allow any company to power their own stablecoin yield products for their users, who can trust in OpenTrade’s enterprise-grade technology systems, and the security guarantees of our time-tested legal protections and bank-grade asset management operations. Learn more at https://www.opentrade.io/.
Emmanuel Mugabo
Nov 12, 2024