Stablecoins as Latin America’s dollar for payments, remittances

Stablecoins accounted for $324 billion of Latin America’s $730 billion on-chain volume in 2025, an 89% year-on-year increase, according to regional market trackers. The region’s on-chain total rose about 60% from the prior year.

Traders, payment firms and fintechs say residents use dollar-pegged tokens for payments, savings and cross-border transfers to protect purchasing power amid currency volatility and inflation. OpenTrade described stablecoins as everyday tools for storing value, making payments, securing instant remittances and tokenizing real-world assets.

Usage differs across countries. In Brazil more than 90% of crypto activity is linked to stablecoins. In Argentina they account for at least 60% of crypto flows. Venezuela reports the highest stablecoin share in retail payments at roughly 34% of retail activity.

A report from Fireblocks found about seven in 10 people in Latin America use stablecoins for international transfers, citing frustration with bank fees and currency depreciation. In the U.S.–Mexico corridor, the exchange Bitso handles roughly $6.5 billion in annual remittances, representing about 10% of remittances on that route.

Industry participants say stablecoin rails can reduce settlement times and fees compared with traditional correspondent banking, a feature some freelancers and salaried workers use to preserve more of their income.

Fintech expansion is linked to adoption. The region now hosts more than 3,000 fintech firms and over 20 unicorns. Nubank serves about 118 million customers and reaches more than 60% of adults in Brazil while operating in Mexico and Colombia. Analysts project the regional fintech sector to grow at about a 27% compound annual rate from 2022 to 2028.

Use cases extend beyond remittances. Businesses are adopting stablecoins for payroll, dollar-based savings products and credit lines collateralized in stablecoins. Leandro Davo, Argentina ecosystem lead at Avalanche, called crypto assets “no longer a passing phase but rather a more consistent trend in the region.” Felipe Galvis, Latin America business lead at OpenTrade, noted stablecoins can help preserve citizens’ savings when local currencies lose value. Ben Reid of Juno described local stablecoins connected to local ramps as an attractive route into markets like Mexico or Brazil without becoming a regulated bank.

Regulatory and operational questions remain, including oversight of issuers, consumer protections and the mechanics of converting between local fiat and stablecoins. Market participants point to growing real-world use and fintech partnerships as the main factors behind rising stablecoin activity across Latin America.