Global FinTech partnering with Brazilian fintech leaders to enable low-cost and streamlined access to USDC.
Circle, a global FinTech and issuer of the leading regulated stablecoin USDC, has announced its official launch in Brazil.
This strategic expansion is pitched as marking an opportunity to deliver highly demanded USD-backed digital dollars and digital asset infrastructure to a market at the forefront of fintech innovation and adoption.
Circle is partnering with leading regional businesses, including BTG Pactual and Nubank, to launch digital asset products and enable near-instant, low-cost and 24/7 access to USDC for their users.
The move comes at a time of exponential fintech adoption resulting from pro-innovation policies and initiatives, such as the 2020 introduction of the instant payment platform Pix – which has over 160 million users familiar with digital wallets and efficient financial rails.
Stablecoins currently represent roughly 90% of the value of the crypto transactions, resulting from leading neobanks and fintechs developing new products to cater to millions interested in transacting with stablecoins.
Circle aims to enhance the Brazilian financial landscape by working with these innovative companies to make digital dollars widely available via USDC.
As part of the market launch, Circle is partnering with BTG Pactual, the largest investment bank in Latin America, to serve as its direct USDC distribution partner in Brazil, providing USDC to their existing retail and institutional clients and onboarding new clients who wish to access USDC.
The collaboration will equip USDC with local banking rail capabilities for near-instant and low-cost access for businesses to mint and redeem digital dollars.
“We are committed to making a positive impact in the Brazilian market and partnering with key stakeholders to empower businesses to participate in the global economy with greater ease and efficiency,” said Jeremy Allaire, Co-Founder and CEO, Circle. “There are many powerful opportunities on the horizon when Brazil’s fintech-forward ecosystem converges with the world’s most accessible dollar platform.”
“Since 2017, BTG Pactual has been at the forefront of financial market innovations, actively participating in the crypto space. Our commitment to innovation led us to create Mynt, our own Crypto trading platform. We are proud to be the first bank to issue a security token and a USD stablecoin in the world and also the first bitcoin fund by a financial institution in Brazil,” said André Portilho, Head Digital Assets, BTG Pactual.
“Our partnership with Circle is a testament to our belief that blockchain technology will form the new infrastructure of the financial industry. These milestones underscore our dedication to pushing the boundaries and shaping the future of digital assets.”
Following last year’s partnership announcement with Nubank, the world’s largest digital banking platform outside of Asia, serving over 100 million customers across Brazil, Mexico, and Colombia, Nubank Cripto customers in Brazil are already transacting with USDC.
“Our partnership with Circle marks a significant milestone for Nubank and the access to digital dollars in Brazil. In our 100 million active user base, we see a large demand for customers to seek digital dollars as a way to protect against inflation, build their savings and in the future, spend and use it for other useful applications,” said Thomaz Fortes, General Manager, Nubank Cripto.
“With the introduction of USDC, we can open up many possibilities for our customers, enhancing the security, transparency, and diversification of our portfolio at Nubank. We are glad to partner with Circle to help democratize access to the world of digital assets and contribute to the future of digital financial transactions. We believe that there’s a new generation of financial infrastructure coming, and we’re ready for it.”
In a further sign of a strengthening Brazilian FinTech sector, PagBank, one of the largest digital banks in Brazil, reached a record recurring net profit of 522 million BRL (+33% YoY) in the first quarter of 2024.
The net accounting profit reached 483 million BRL (+31 YoY%).
Alexandre Magnani, CEO, PagBank, said the continuity of the good results presented in the previous quarters highlighted the expressive gain of market share in payments (acquirings), balancing growth with profitability, while PagBank establishes itself among the largest financial institutions in Brazil.
“We have consolidated our value proposition for micro, small, and medium-sized enterprises, facilitating the financial life of individuals and businesses. At the same time, we have captured opportunities for client-consumers who do not have a relationship with payment machines through payroll loans, our broad investment platform, and the offer of a complete bank,” said Magnani.
Net revenue in the quarter was 4.3 billion BRL (+15% YoY), driven by the strong growth of the acquirings, led by MSMBs (micro, small and medium-sized businesses) and the advance in large accounts.
The number of clients reached 31.4 million – reinforcing PagBank’s position as one of the largest digital banks in the country.
In the same period, PagBank has been recognized as the best bank in Brazil and awarded the RA1000 seal of quality in service – both granted by the Reclame Aqui ranking – and as one of the 50 most valuable brands in the country, according to a survey conducted by Kantar BrandZ.
Among the launches of the quarter, main highlights were PagBankPartnerships, a relationship and integration program with software companies and commercial automation and Tap to Pay Online, a new and exclusive technology in Latin America allowing the customer to run online transactions by bringing credit or debit card closer to the mobile phone on e-commerce platforms.
“This current moment reminds us very much of our phase between 2018 and 2019, in which we grew in a fast and profitable way and launched several products. We are very optimistic about the coming months and years of the Company”, said Magnani.
