- Circle and Mercado Libre have partnered to introduce USDC stablecoin to Chile.
- Circle’s CEO, Jeremy Allaire, shared the partnership news through a thread on X(formerly Twitter).
- The alliance between the fintech companies will offer a secure financial option for Chilean customers.
Circle and Mercado Libre Partners to Offer Digital Financial Products to Chilean Customers
Two Fintech giants have launched an alliance to bring USDC Stablecoin to Chilean customers. Circle, a U.S. payments company, has partnered with Mercado Libre, Latin America’s most prominent digital payments platform.
The timing of the strategic partnership resonates with the need for a solution to Chile’s ongoing economic instability and high inflation.
The economic instability in Chile has led to a demand for the use of digital financial products, a fact that aligns with the collaboration between the two fintech firms.
“The US dollar is one of the most stable currencies in the world and a simple vehicle to ensure wealth preservation amidst general uncertainty. With the launch of this stablecoin, we seek to diversify access to cryptocurrencies and offer the more than two million Mercado Pago users an alternative that matches the value of the dollar,” Matías Spagui, Senior Director of Mercado Pago, said.
USDC is pegged to the U.S. dollar, and its launch in Chile presents a massive-scale opportunity for more utility and expansion.
Through this profound partnership, Chilean customers can manage their wealth, access safer, faster, and secure transactions, and utilize a diverse financial instrument.
The plan to bring USDC stablecoin to Chile is a strategic effort to tread on the demand for a digital finance ecosystem, a wave spreading across countries. The demand for new financial products like cryptocurrencies is a wave coursing through traditional establishments and even politics. The growth of cryptocurrency in places consumed by high inflation rates and economic instability has taken the interest of Fintech firms like Mercado Libre and Circle.
New financial products are more likely to be prioritized by customers in such circumstances, as seen in Argentina and Latin America. There is a demand for the adoption of digital financial products like cryptocurrencies. Mercado Libre and Circle’s partnership is determined to offer accessibility to digital dollars in the region and a global financial ecosystem.
“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,” Rachel Mayer, the Vice president of Product at Circle, stated.
Circle and Mercado Libre Bonds Over Expansion Plans
Recently, Mercado Libre partnered with Paxos to integrate the Pax Dollar (USDP) stablecoin for Mexican users.
With over two million users of Mercado Libre, the Latin American payment company continues to progress in its crypto integration efforts.
Coinbase announced its plans to take an equity stake in Circle to support the extension of the stablecoin use to other jurisdictions.
The two fintech firms unite in their plans for global expansion.