Latin American cryptocurrency company Ripio will work with global FinTech firm Circle, using the latter’s platform to support USD Coin (USDC) liquidity, according to a press release emailed to PYMNTS. It will also work to fund flows across Circle’s exchange and wallet products.
In addition, Ripio has rolled out wallet feature Ripio Earn, which is a USDC yield account providing a 6 percent annual rate return, the release stated. The program works only with USDC and has a minimum amount to access it of 50 USDC, with a maximum placement amount of 5,000 USDC. The product is available in Argentina and Brazil.
South America is experiencing rapid growth in stablecoin use, with a massive spike in the use of U.S. dollars as a store of value, according to the release. Ripio said it has seen an 800 percent increase in the use of stablecoins during the second quarter of 2020.
And USDC has seen a 500 percent surge globally as of late, with one driving factor being the dollarization, or the shift to U.S. dollar access, which has been shown to be something of a buoy while other currencies are feeling a strain of the current economic crisis, the release stated.
Circle Co-Founder and CEO Jeremy Allaire said in the release that the company is “excited to see Ripio take advantage of our platform services to accelerate the adoption of digital dollars and introduce innovative new products like Ripio Earn.”
“From investors to gig economy workers, the broad availability of digital dollars championed by Ripio promises to increase access to new economic opportunities for many more people than previously possible,” he said, according to the release.
Last month, Allaire spoke with PYMNTS on the viability of digital currencies. He said they are ready to make the leap from speculative futurism into a more widely accepted vehicle for payments.