In a major development for the growing fintech industry in Brazil, Circle, a well-known global financial technology company recognized for issuing USDC, one of the top regulated stablecoins worldwide, has officially announced its expansion into the Brazilian market.
This announcement was made at the Circle Forum in São Paulo, marking a significant move towards providing access to USD-backed digital dollars and a strong digital asset infrastructure in a region that is quickly embracing financial technology advancements.
This expansion is in line with Brazil’s increasing adoption of fintech solutions, especially after the introduction of Pix in 2020 – an instant payment platform with over 160 million users who are familiar with digital wallets and efficient financial services.
Stablecoins, which account for about 90% of crypto transactions in terms of value, have been increasingly integrated into product offerings by leading neobanks and fintech companies. Circle’s entrance is set to further enrich the financial landscape in Brazil by working with local innovators to increase accessibility to digital dollars through USDC.
Improving Accessibility to Digital Currency and Encouraging Innovation
As part of their market expansion strategy, Circle has teamed up with BTG Pactual, the largest investment bank in Latin America, to enable direct distribution of USDC in Brazil. This partnership will grant BTG’s vast network of retail and institutional clients seamless access to USDC, utilizing local banking infrastructure for swift and cost-effective transactions.
This collaboration not only broadens the reach of USDC but also supports Brazilian businesses in connecting to the global economy with unprecedented ease.
Jeremy Allaire, Co-Founder and CEO of Circle, emphasized the company’s dedication to making a positive impact on the Brazilian market by empowering businesses to actively participate in the global economic landscape. Allaire believes that the synergy between Brazil’s forward-thinking fintech ecosystem and Circle’s accessible dollar platform presents numerous transformative opportunities for the region.
In 2017, BTG Pactual began leading innovations in the financial market, delving into the crypto space and introducing Mynt, its crypto trading platform.
André Portilho, Head of Digital Assets at BTG Pactual, highlighted the bank’s pioneering initiatives in creating the first security token and USD stablecoin, as well as launching the initial Bitcoin fund by a financial institution in Brazil. The partnership with Circle is seen as a natural progression towards harnessing blockchain technology to redefine financial infrastructure.
Furthermore, following a partnership announcement last year with Nubank, the largest digital banking platform globally outside Asia, customers of Nubank Cripto in Brazil are already engaging in transactions with USDC. Thomaz Fortes, General Manager of Nubank Cripto, noted the significant demand among their 100 million users for digital dollars as a hedge against inflation and a way to diversify savings.
The incorporation of USDC by Nubank aims to unlock a multitude of financial opportunities for its customers, enhancing the security, transparency, and diversity of their financial transactions.