Remitly Explores Stablecoins for Enhanced Cross-Border Payments
As stablecoins gain prominence in cross-border payments, Remitly is preparing to introduce a digital wallet that supports both stablecoins and fiat currencies. This move comes through a partnership with Bridge, an infrastructure provider for Stripe.
The initial step involves the launch of Remitly Wallet, currently under beta testing, which is expected to go live in September. The multi-currency wallet will facilitate sending and receiving funds in stablecoins, enhancing user experience across over 170 countries where Remitly operates.
Integrating Stablecoins into Treasury Operations
In addition to the digital wallet, Remitly is incorporating stablecoins like USDC (issued by Circle) into its internal treasury operations. By tokenizing a portion of its U.S. dollar reserves, Remitly aims to achieve faster fund transfers across time zones and beyond regular banking hours.
Speeding Up Transactions for Immigrants and Overseas Workers
Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research, notes that traditional remittance methods are costly and can take days to be received by the end consumer. Moreover, converting fiat currency into a local currency often adds time and fees.
Hugentobler explains, “Stablecoins streamline these processes for users to send and receive funds almost instantly with significantly reduced fees.” The Remitly wallet will allow for the conversion from stablecoins to local currency with ease at more favorable rates. To remain competitive, financial institutions need to adopt a stablecoin strategy.
A Timely Move Amid Currency Fluctuations
The release of the product is timely as global currency fluctuations due to tariff policies impact cross-border payments. Stablecoins, being pegged to fiat currencies like the dollar, offer resistance against volatility and support price stability in mining operations, particularly in emerging markets.
An earlier study by The Bank for International Settlements (BIS) showed that cryptocurrencies facilitated about $600 billion in cross-border payments during Q2 2024. BIS noted Circle’s USDC and Tether’s USDT stablecoins have gained traction in everyday transactions.
