Bitso leverages Circle to build US–Mexico payment corridor

The largest cryptocurrency exchange in Latin America, Bitso, is integrating Circle’s solutions to launch a cross-border payments corridor between the United States and Mexico. The initiative will allow companies and individuals to perform cross-border transactions using the USD Coin (USDC) stablecoin.

Global economic prosperity is a key part of Circle’s mission. We’re excited to support @Bitso and help offer a more seamless cross-border exchange for individuals and small businesses between the U.S. and Mexico 👇https://t.co/HPRKTzqplQ

— Circle (@circlepay) November 18, 2021

Under the Bitso Shift program, Circle will provide access to its payments infrastructure via its APIs for the Bitso exchange. The parties say the initiative will enhance the security and efficiency of cross-border transfers, reducing counterparties’ fees and shortening settlement times.

Users will be able to make deposits and withdrawals through internal transfers, make payments from the United States or Mexico, and instantly convert Mexican pesos into stablecoins at competitive market rates.

According to the World Bank, in 2020 the volume of remittances between the United States and Mexico rose by almost 10% and reached nearly $43 billion. There are many Mexican expatriates living in the United States who regularly send money home. However, dollar accounts remain inaccessible to many residents. 

“This is a tremendous opportunity for Circle and USDC — to become part of the world’s largest cross-border corridor between the United States and Mexico. We are excited to join the Bitso Shift initiative, demonstrating how blockchain technology can bring scalable, efficient and cost-effective solutions,” said Circle CEO Jeremy Allaire.

According to the press release, transfers through Bitso Shift are processed within 48 hours. The payments delivery chain involves “fully regulated institutions.” The parties did not set a cap on the size of individual transactions.

Possibly, Circle aims to occupy a niche previously held by Ripple, which in 2020 processed up to 10% of transfers between the United States and Mexico. In March 2021, the head of the latter, Brad Garlinghouse, noted that the conflict with the SEC hinders the deployment of innovations in the United States.

Earlier in May, Bitso raised $250 million in a Series C funding round. Investors valued the company at $2.2 billion.

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