Circle Internet Financial, the issuer of the widely-used USD-Coin (USDC), has highlighted the significant role of USDC in facilitating Asia settlements in its latest State of the USDC Economy report.
Since its introduction in 2018, the stablecoin has emerged as a preferred choice for Asia remittances, facilitating transactions totaling over $12 trillion on the blockchain.
In its comprehensive report, Circle reveals a notable surge in remittances flowing through Asia via its USDCoin stablecoin, showcasing its utility beyond speculative transactions. The report discloses that in 2022 alone, more than $130 billion worth of USDC entered Asia. The Asia-Pacific region contributed 29% to the global digital asset value, surpassing North America’s 19% and Western Europe’s 22%.
A significant driver behind this surge is the role of USDC in remittance transfers, particularly in emerging markets like the Philippines. The report details Circle’s collaboration with local crypto exchange Coins.ph to tap into this burgeoning market, estimated at around $36 billion annually.
Moreover, Circle emphasizes the pivotal role of USD-Coin in addressing the region’s $510 billion trade finance gap, which represents the lack of liquidity available to businesses for cross-border credit and remittances. Various companies actively utilize the stablecoin to bridge this gap, with examples like Taipei-based XREX standing out. Wayne Huang, co-founder of XREX, in 2023’s Stablecoin Summit, highlighted the company’s efforts to create financial channels between nations using stablecoins like USDC to exploit deep dollar liquidity within Southeast Asian countries.
Circle’s report sheds light on how USDC is not only facilitating efficient remittance solutions but also actively contributing to closing critical financial gaps in the region, playing a vital role in enhancing cross-border economic activities and trade.
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