Stablecoin News: Global Stablecoin Settlements Already At 50% to That of VISA and Mastercard

Global Stablecoin Settlements Already At 50% to That of VISA and Mastercard

December 12, 2023 Updated December 13, 2023

Senior Journalist

Expertise : Cryptocurrency, Blockchain, Macro Finance

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Read full bio

Claim Card

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

The stablecoin market is advancing pretty fast and making quick inroads into the global settlement industry. A recent report from USDC stablecoin issuer Circle stated that the global settlement value of stablecoins surpassed $7 trillion, which is comparable to the $14 trillion settled by Visa and Mastercard combined.

Demand for Blockchain-based Financial Services

Circle, the issuer of the USDC stablecoin, suggests that blockchain infrastructure is on the verge of handling increased economic activity globally, especially in Latin America. The shift towards blockchain-based financial services is accelerating, with millions of businesses and billions of people expected to turn to regulated blockchain solutions for savings, payments, and credit.

Latin America is playing a leading role in this transformation, with citizens receiving $562 billion in digital currency value from mid-2021 to mid-2022. The growth is due to the value proposition of expanded access, particularly targeting the 1.7 billion underbanked individuals globally who own smartphones. This trend will further disrupt traditional financial processes and bureaucracy.

LatAm Driving Stablecoin Adoption

Latin America is also emerging as a key player in the global adoption of digital currency and financial technology, taking a lead role comparable to North America’s influence on the original internet. The region’s significant population, roughly 658 million, along with a robust developer base of nearly a million, contributes to its growing prominence.

Latin America’s fintech adoption is linked to reduced income inequality, with three-quarters of the 30 million digital bank customers being previously unbanked or underbanked individuals and small/medium enterprises. With strong regulatory support and a doubling of the fintech sector’s size to approximately 2500 platforms, Latin America becomes a natural fit for broader stablecoin adoption.

The region is already witnessing stablecoins entering the purchasing power of consumers. As Central Bank Digital Currencies (CBDCs) gain traction, Circle aims to foster financial interoperability locally and globally by building infrastructure through compliant stablecoins and blockchain-based solutions.

Circle’s Vision As Infrastructure Provider

Circle’s USDC, launched in 2018, has become one of the most liquid and widely held digital currencies globally, with approximately $4 billion in daily transactions. With nearly 2 million users in over 190 countries, USDC is fully reserved, backed 100% by highly liquid assets and redeemable 1:1 for US dollars.

The stablecoin’s reserve includes investments in the Circle Reserve Fund, an SEC-regulated money market fund managed by BlackRock. While most stablecoin activity is currently in dollars, facilitating trade invoicing, Circle anticipates the availability of more non-dollar stablecoins in the future. In 2021, Circle introduced EURC, a euro-backed stablecoin, following the same full-reserve model as USDC.

BC Game

Play 10,000+ Casino Games at BC Game with Ease

Instant Deposits And Withdrawals
Crypto Casino And Sports Betting
Exclusive Bonuses And Rewards

Play Now

Tap here to Add CoinGape as a Trusted Source

Global Stablecoin Settlements Already At 50% to That of VISA and Mastercard

Demand for Blockchain-based Financial Services

LatAm Driving Stablecoin Adoption

Circle’s Vision As Infrastructure Provider

Related Articles

Circle Stock Price Jumps 35% to $83 on Stablecoin Boom, USDC Supply Soars 72%

Crypto.com Joins Ripple, Circle With Conditional Bank Charter Approval Amid WLFI’s Probe

Breaking: ABA Tells OCC to Delay Charter Review for Ripple, Coinbase, Circle

CZ’s YZi Labs Joins BitGo IPO as Strategic Investor After Strong NYSE Debut

USDC Treasury Burns 51M Tokens on Solana Even as Stablecoin Demand Heats Up

Ripple, Circle Could Gain Fed Access as Board Seeks Feedback on ‘Skinny Master Account’