Circle, the issuer of the popular U.S. dollar-pegged stablecoin, USDC, is expanding its presence in the Philippines through a strategic partnership with Coins.ph, a significant cryptocurrency exchange and digital wallet provider in the country. This partnership, announced on October 10, is aimed at promoting USDC payments and enhancing cross-border money transfers for the Filipino population.
According to data from the World Bank, in 2022, the average cost of sending a $200 payment to Asia was 5.7%. In the Philippines, the situation is even more complex, particularly for the unbanked, who constituted 44% of the adult population in 2021, as reported by the Philippines Central Bank. Traditional remittance channels are often associated with high fees and extended transaction times, which has been a challenge for many Filipinos.
With the Philippines being one of the world’s largest recipients of remittances, amounting to $36.1 billion in 2022 alone, Circle and Coins.ph aim to improve the existing remittance landscape. They plan to achieve this through educational campaigns and community engagement initiatives designed to help Filipinos abroad use USDC for remittances.
Wei Zhou, CEO of Coins.ph, expressed the intent to provide a faster, more cost-effective, and accessible remittance option for their 18 million Filipino users and their families abroad. He emphasized that this partnership aligns with Coins.ph’s commitment to offering innovative services that have a meaningful impact on users’ daily lives, particularly with their recent focus on Web3 technology.
Coins.ph, established in 2014, is a prominent cryptocurrency exchange in the Philippines, enabling users to pay bills and remit money using its digital wallet. While USDC is a notable stablecoin on the platform, Coins.ph also supports various other digital assets. According to CoinGecko data, USDC boasts daily trading volumes of $44,500 on Coins.ph, accounting for roughly 13% of all daily trading, with Tether being a significant competitor. The exchange maintains a daily trading volume of approximately $1 million, as of the latest data.
This partnership not only underscores the growing importance of stablecoins and blockchain-based technologies in the realm of cross-border payments but also the potential to alleviate financial challenges faced by millions of Filipinos and their families overseas. It represents another significant step towards making cryptocurrencies and blockchain technology more accessible and beneficial to a wider audience.
