Fintech firms Circle and Mercado Pago have announced a strategic alliance to introduce the USDC stablecoin to Chilean customers.
A U.S. payment company, Circle and the biggest online payment platform in Latin America, Mercado Pago, announced a strategic collaboration to introduce the USDC stablecoin to customers in Chile on Aug. 29. This collaboration comes at a time when Chile, along with other countries in the region, is grappling with economic instability and heightened inflation rates.
“Amidst the ongoing economic turbulence, the U.S. dollar stands as a beacon of financial stability,” stated Matías Spagui, senior director at Mercado Pago. The main goal of the partnership is to “diversify access to cryptocurrencies,” giving people a financial instrument to manage their wealth.
For its part, Circle, a key developer behind USDC, emphasized that the integration with Mercado Pago is designed to furnish users with a “trusted, secure, and transparent digital dollar asset.” This essentially allows for “near-instant transactions and extends the potential financial services” that can be offered to the Chilean market.
Rachel Mayer, vice president of product at Circle, commented, “Latin America is morphing into a pivotal hub for digital finance, and working with Mercado Pago signifies a crucial step in making digital financial solutions more accessible.”
The collaboration between the two companies aligns with the broader trend of increased adoption of digital financial products in Latin America. Earlier, Ark Invest highlighted the growth of cryptocurrency usage in Argentina, another South American nation contending with high inflation rates. This rising digital finance ecosystem has even led to political changes, with candidates who support cryptocurrencies gaining prominence.
Both Circle and Mercado Pago are capitalizing on this rising demand for digital financial instruments that can serve as a stable store of value. The partnership also represents a step forward in Circle’s broader strategy to globalize the use of USDC.
Earlier this month, Coinbase announced plans to extend the use of the stablecoin to other jurisdictions and disclosed that it was increasing its support for stablecoins by taking an equity stake in Circle.
