Embracing Stablecoins
Remitly is stepping up its game by integrating stablecoins into its services, aiming to offer a more efficient and faster cross-border payment experience. The company plans to launch the Remitly Wallet, an all-in-one digital wallet that supports both fiat currencies and stablecoins.
The beta version of the Remitly Wallet will go live in September, allowing users to send and receive funds through this new platform. This move comes with a partnership between Remitly and Bridge, Stripe’s stablecoin infrastructure provider.
Incorporating stablecoins like USDC, issued by Circle, into its internal treasury operations will also enable Remitly to offer faster fund transfers across time zones without the need for pre-funded local currency pools. By tokenizing a portion of their U.S. dollar reserves, Remitly intends to streamline cross-border transactions.
Reducing Costs and Increasing Speed
For immigrants and overseas workers who rely on traditional remittance methods, the process can be cumbersome and expensive. Traditional systems often take days or even weeks to complete a transaction, with additional fees for currency conversion.
“Stablecoins offer an instant solution, cutting down the time and cost involved in cross-border payments,” notes Joel Hugentobler from Javelin Strategy & Research. “By converting stablecoins into local currencies through a single click, users can experience lower transaction fees and more reliable services.”
Remitly’s strategic move is timely as currency fluctuations due to tariff policies have affected global economies. Stablecoins’ stability against volatility makes them increasingly attractive for use in cross-border transactions, particularly in emerging markets.
Growing Trends and Statistics
According to a recent report by the Bank for International Settlements (BIS), cryptocurrencies facilitated about $600 billion worth of cross-border payments during Q2 2024. Notably, stablecoins like USDC and Tether’s USDT have gained significant traction in everyday transactions.