As stablecoins gain prominence in cross-border payments, Remitly prepares to introduce digital wallets for sending and receiving funds using these cryptocurrencies.

First Moves

The initial phase involves launching Remitly Wallet, a multi-currency digital wallet supporting both traditional money and stablecoins. Currently in beta testing, the wallet is anticipated to become available by September.

Remitly is also integrating stablecoins such as USDC—issued by Circle—into its internal treasury operations. By tokenizing parts of its U.S. dollar reserves, Remitly aims to expedite international fund transfers outside regular banking hours and reduce dependence on pre-funded local currency pools.

Advantages and Strategy

Remitly, which specializes in serving immigrants and overseas workers, claims this move will enhance speed, reliability, and cost-efficiency for users across over 170 countries.

Traditional remittance methods are costly and can take days or even weeks,” said Joel Hugentobler, a Cryptocurrency Analyst at Javelin Strategy & Research. Then they may have to convert the fiat currency to their local currency—which adds more time and fees.

Stablecoins streamline these processes for consumers to send and receive funds instantly with significantly reduced fees,” he added. The Remitly wallet will enable easy conversion from stablecoins to a local currency with much lower costs.”

A Time for Growth

The launch of the product coincides with the challenges posed by fluctuating currencies due to tariff policies. Stablecoins, being pegged to fiat currencies like the dollar, can help mitigate currency volatility, especially in emerging markets where they support price stability in mining operations.

Earlier this year, The Bank for International Settlements (BIS) reported that cryptocurrencies facilitated approximately $600 billion in cross-border payments during Q2 2024. BIS noted the growing acceptance of stablecoins like USDC and Tether’s USDT in everyday transactions.