Latin American citizens are increasingly turning to stablecoins as a viable alternative to traditional banking infrastructure, according to recent reports. Individuals in countries such as Argentina, Venezuela, Bolivia, and Mexico are utilizing dollar-backed digital assets for their everyday financial needs, including daily payments and savings. This trend was confirmed by Patricio Mesri, co-CEO of Bybit's Latin American division, during the European Blockchain Convention 2025 in Barcelona. The adoption of stablecoins is a direct response to persistent issues with high remittance fees associated with SWIFT transfers and the limited accessibility of credit for many residents.
Demand Driven by Inflation and Financial Access
Nations grappling with high inflation rates are seeing a significant surge in the demand for dollar-backed stablecoins. Argentina, for instance, experienced an annual inflation rate exceeding 100 percent in recent years, prompting many to seek more stable financial instruments. Data from the local crypto exchange Bitso indicates that stablecoin transactions constituted 39 percent of all purchases made on their platform in 2024. Among these digital assets, USDC and USDT emerged as the most popular choices. Common applications for these stablecoins include facilitating cross-border money transfers and securing loans for major purchases such as automobiles and residential properties.
Lower Transaction Costs Boost Stablecoin Remittance Growth
The financial burden imposed by remittance costs is a significant concern for many families across Latin America. Traditional banking channels typically levy fees ranging from 6 to 7 percent for international money transfers. In contrast, blockchain-based payment systems offer a more cost-effective solution, reducing these fees to below 1 percent. This reduction directly benefits the vast network of over 800 million individuals worldwide who rely on remittances for their financial support.
Data compiled by Chainalysis reveals that stablecoin purchases accounted for more than half of all exchange transactions in Colombia, Argentina, and Brazil between July 2024 and June 2025. Brazil has emerged as a dominant force in regional cryptocurrency activity, receiving a total value of 318.8 billion dollars, which represents nearly one-third of all crypto transactions within Latin America. In this context, stablecoins are serving a dual purpose: acting as a hedge against currency fluctuations and functioning as a practical medium for daily commercial transactions.
Financial institutions within Latin America are demonstrating a strong readiness to integrate stablecoin technology. A report by Fireblocks indicates that 71 percent of regional firms have confirmed their infrastructure is prepared for stablecoin deployment. Furthermore, only a small fraction, just 7 percent, identified a lack of internal expertise as a hindrance, which is the lowest percentage reported globally. The payment service provider and gaming sectors have shown the most substantial growth rates in stablecoin usage during the first half of 2025.
Tokenization Poised to Address Capital Market Inefficiencies
The persistent issue of limited banking access has created systemic challenges for Latin American capital markets. High startup expenses and technological hurdles have historically slowed the flow of investment into the region. Bitfinex Securities has proposed that the tokenization of real-world assets (RWAs) could offer a solution to these liquidity constraints. Tokenized products have the potential to reduce the costs associated with issuing capital by up to 4 percent and can expedite listing times by as much as 90 days when compared to conventional methods.
Paolo Ardoino, CEO of Tether and CTO of Bitfinex Securities, has emphasized that tokenization actively works to dismantle existing barriers. Businesses and individuals in emerging economies have faced difficulties for decades in accessing capital through established, legacy markets. Real-world assets, when tokenized, can unlock capital more efficiently than traditional financial instruments. According to Chainalysis data, Latin America was recognized as the seventh-largest cryptocurrency economy in 2023.
The current trajectory of the region suggests a continued and sustained increase in stablecoin adoption. Throughout 2025, there has been a notable rise in institutional participation, mirroring the growing demand from retail users. Brazil is at the forefront of regulatory development, actively establishing comprehensive frameworks for cryptocurrencies. Other nations in the region are navigating their own unique challenges, striving to balance the promotion of innovation with the imperative of consumer protection. A key consideration moving forward will be whether other Latin American countries opt to follow Brazil's established regulatory model or develop their own distinct frameworks tailored to their specific economic circumstances.