Circle Joins Latin America Leader Ripio to Accelerate USDC Adoption Across the Region
Circle, the issuer of stablecoin USD Coin (USDC), has announced a partnership with Gravel, a leading cryptocurrency exchange in Latin America based in Argentina, to address the growing demand for digital dollars.
Circle announced the news in a release release on Wednesday October 14. Through this partnership, Ripio will leverage the services of the Circle platform to support the liquidity and cash flows of USD Coin (USDC) in its exchange and wallet products.
Ripio will implement Circle's transactional services, business accounts, and platform APIs to provide easy conversion of local currencies into and out of USDC, "Manage liquidity and custodial funds and automate associated treasury operations in Ripio's exchange and wallet products."
As a value-added service, Ripio has also introduced “Ripio Earn,” a performance account in USDC offering a six percent annual interest rate yield, now available to Ripio's more than 500,000 users in Argentina and Brazil.
According to Circle, recent macroeconomic conditions, such as the COVID-19 pandemic, have strained many currencies with increasing volatility that has prompted companies and institutions to seek strategies to access US dollars. USDC ranks as one of the most efficient and effective vehicles on the flight to safety.
The Coinbase-backed stablecoin has recorded a increase triple-digit market capitalization in 2020. According to the issuer, "Global demand for USDC has grown nearly 500% year-to-date, from just over $ 400 million in circulation at the beginning of the year to a market capitalization of nearly $ 2.8 billion today."
Under these circumstances, the South American region is a major hot spot in the demand for stablecoins. Ripio has become a benchmark for accessing digital dollars with stablecoin transactions in the last quarter that increased more than 800% compared to the previous quarter.
The partnership between Ripio and Circle is to respond to this growing demand for stablecoins in the region. Jeremy Allaire, CEO and co-founder of Circle, commented:
“Ripio is a pioneer in fintech who continues to be at the forefront of not only the cryptocurrency industry, but also the broader consumer finance and B2B sectors in Latin America. We are excited to see Ripio leverage our platform services to accelerate the adoption of digital dollars and introduce innovative new products like Ripio Earn. From investors to gig-economy workers, the wide availability of digital dollars championed by Ripio promises to increase access to new economic opportunities for many more people than previously possible.
Sebastián Serrano, CEO and co-founder of Ripio, stated:
"We are excited to have a partner like Circle with a powerful and flexible stablecoin platform that keeps pace with our rapidly evolving product range and shares our vision for a fairer and more inclusive financial system."
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