Research

2024 LATAM SBC Report

Apr 3, 2025

Stablecoins—digital assets pegged to a reserve currency like the U.S. dollar—are quickly reshaping global finance. According to Coinchange’s 2024 LATAM Stablecoin Report (co-produced with various industry leaders such as CryptoMarket, Borderless.xyz, M^0, Bitso, and others), these tokens have emerged as one of crypto’s most impactful applications. In Q1 2024 alone, stablecoins processed around $30 trillion in transactions worldwide, indicating that their influence is accelerating. Read the full report here.

Why Stablecoins Matter

Unlike volatile cryptocurrencies, stablecoins provide a more predictable store of value and a frictionless way to move money around the globe. Traditional payment systems suffer from multiple intermediaries, 2–3% fees, and settlement delays. By contrast, stablecoins enable near-instant and low-cost transfers, often at less than $1 per transaction. This makes them well-suited for everyday payments and cross-border remittances.

Major payment companies are taking notice: PayPal launched its own stablecoin (PYUSD), and Stripe acquired a stablecoin-focused startup, Bridge, for $1.1 billion. Such moves hint at a future in which stablecoins power much of our online commerce.

LATAM: A Prime Market

Latin America leads in stablecoin adoption. High inflation, currency restrictions, and limited access to U.S. dollars have driven both individuals and businesses toward USD-denominated digital assets. Brazil, Mexico, Venezuela, and Argentina rank among the top 20 countries for crypto usage globally. In some regions, stablecoins dominate local crypto trading volumes.

Brazil: Regulatory clarity has encouraged local fintechs to develop stablecoin-based payment solutions. Global stablecoin issuers like Circle (USDC) are expanding into the Brazilian market, expecting further growth in 2025 as new crypto licenses take effect.
Argentina: Suffering from steep inflation and a weak peso, Argentines use stablecoins to protect savings and as a functional substitute for U.S. dollars. Trading spikes each time the peso hits new lows.
Venezuela: Unstable currency and hyperinflation have made stablecoins an everyday financial tool. Companies like El Dorado help locals hold USD-pegged assets, bypassing currency controls.
Mexico: The hefty remittance market (over $60B a year) drives demand for stablecoins to streamline cross-border payments and mitigate unfavorable exchange rates.

A New Revenue Stream: Stablecoin Yield

Beyond payments, stablecoins create yield-generating opportunities. Through decentralized finance (DeFi) protocols, fintechs and neobanks can lend stablecoins or provide liquidity in exchange for interest—often 10–30% yields. Rather than building in-house expertise, many businesses partner with yield infrastructure providers like Coinchange, which handles the technical and compliance complexities of DeFi strategies.

Regulatory and Educational Hurdles

Despite rapid growth, stablecoins still face regulatory uncertainty. Some LATAM countries, notably Brazil, are working on clearer frameworks, which helps institutions feel more confident in entering the market. Education remains key: many potential adopters need clarity on how stablecoins function and how they can mitigate inflation, reduce costs, and accelerate global transactions.

What’s Next?

Every business—particularly in LATAM—needs to consider a stablecoin strategy. Whether integrating stablecoins for faster cross-border payments or building a branded token (with protocols like M^0), the benefits are hard to ignore:

Reduced fees: Less reliance on card networks and middlemen.
Instant settlement: Faster, more transparent payment rails.
Revenue opportunities: Yield on reserves for fintechs, neobanks, and wallet providers.
Financial inclusion: Stablecoins bypass the traditional banking system, opening new doors for the unbanked.

The question is no longer if stablecoins will reshape finance, but how and when they will become the norm—especially in regions like LATAM that crave more stable and accessible financial tools.