Bitso is creating a payment corridor between US and Mexico
Bitso, the largest cryptocurrency exchange in Latin America, is integrating Circle’s decisions to launch a payment corridor between the United States and Mexico. The initiative will allow companies and individuals to make cross-border transactions using the stable USD Coin (USDC) coin.
As part of the program, Bitso Shift Circle will provide the bitcoin exchange with access to the payment infrastructure through its APIs. The parties believe that the initiative will increase the security and efficiency of cross-border transfers by reducing the commission costs of counterparties and reducing the time for delivery of payments.
Consumers will be able to make deposits and withdrawals through domestic bank transfers, make payments from the US or Mexico and immediately convert Mexican pesos into stable coins “at competitive market prices”.
According to the World Bank, in 2020 the volume of remittances between the United States and Mexico increased by almost 10% to almost $ 43 billion. Many Mexican immigrants in the United States regularly send money home. However, dollar bills are still inaccessible to many people in the country.
“This is a huge opportunity for Circle and USDC to become part of the largest exchange corridor between the United States and Mexico in the world. We are excited to join the Bitso Shift initiative to show how blockchain technology can bring scalable, efficient, and cost-effective solutions to the market,” said Circle CEO Jeremy Alair.
According to the press release, Bitso Shift translations are processed within 48 hours. The supply chain includes “fully regulated institutions”. The parties have not set limits on the volume of single transactions.
Perhaps Circle is aiming to fill a niche for Ripple, which handles up to 10% of transfers between the United States and Mexico in 2020. In March 2021, the head of the latter Brad Garlinghouse noted that the conflict with the SEC hinders innovation in the states.
Recall that in May, Bitso raised $ 250 million as part of a round of C-series financing. Investors estimated the company at $ 2.2 billion.