Circle Internet Financial (Circle), a stablecoin issuer, has partnered with Coins.ph, a cryptocurrency exchange based in the Philippines, to promote USDC-denominated remittances. According to a statement released by the company, the service aims to offer a secure, cost-effective, and nearly instant solution for international money transfers for users.
Coins.ph's CEO, Wei Zhou, said: "Coins.ph's partnership with Circle aims to show how USDC can provide a faster, lower-cost, and more accessible remittance option for our 18 million Filipino users and their families and loved ones abroad. Coupled with our recent innovations in Web3 technology, this initiative demonstrates Coins. ph's commitment to providing users access to innovative services that have a tangible impact on their everyday lives."
A Game-Changer in Cross-Border Remittances?
The traditional remittance landscape in the Philippines has been affected by high fees and lengthy transaction times. According to the World Bank, as cited by Circle, the average cost of sending a remittance of $200 to Asia in 2022 was 5.7%. This situation is further exacerbated by the fact that 44% of the adult population in the Philippines is unbanked, as reported by the country's central bank in 2021.
In response to these challenges, the partnership is aimed at changing the remittance sector in the Philippines, the fourth largest recipient of remittances globally. Their strategy involves launching educational campaigns and community engagement initiatives to empower Filipinos abroad to embrace USDC for remittances.
In June, Circle Singapore, the local subsidiary of the stablecoin issuer, strengthened its presence in Asia by securing a Major Payment Institution license from the Monetary Authority of Singapore. This license allows the company to offer various digital payment token services, such as cross-border and domestic money transfers. Additionally, the company will introduce the Circle Account, providing institutional clients with access to USDC.
Circle's Global Expansion
Notably, this latest achievement by Circle Singapore follows the footsteps of other well-known cryptocurrency exchanges, such as Coinbase, Crypto.com, and Blockchain .com, all of which have received similar licenses from the Singaporean regulator.
Meanwhile, Coinbase acquired an undisclosed equity stake in Circle in August. In addition to this development, the two companies jointly announced the discontinuation of the Centre Consortium, a self-governance body responsible for overseeing the USDC stablecoin. This significant decision comes amid a growing regulatory framework for stablecoins in the United States.
