Stablecoins Are Now the Top Choice for Remittances in Latin America: Report

Highlights:

• Stablecoins overtook Bitcoin in LATAM crypto purchases as remittances reached $174 billion.
• Analysis says most fintechs misread LATAM users, who need trust and simple transfers.
• Digital and crypto rails are gaining share as Western Union loses ground regionally.

Latin America’s cross-border payments market is changing quickly as stablecoins become a bigger part of everyday money transfers. Stablecoins accounted for 40% of all crypto purchases in the region over the past year, surpassing Bitcoin for the first time. The shift came as remittances to Latin America reached a record $174 billion.

Advertisement

The findings were shared by Claudia Wang, Chief Marketing Officer at Bybit, in an analysis posted on X on Sunday. The research shows that many people in the region are not using digital dollars for short-term trading. Instead, they are using them to protect savings, move money faster, and support family members back home.

Many fintech companies are still building remittance apps for young people who are already familiar with crypto and digital wallets. But Wang’s research shows the real customer in Latin America is often older and much more pragmatic. Many of the senders are aged between 40 and 60 years old across Brazil, Mexico, Argentina, Colombia, and Peru. They send from $131 to $648 a month, often to support a parent. Some 80%of that money is spent on day-to-day needs like food, rent, transport, and medical bills.

That’s why trust is more important than extra features. These users don’t want a complicated crypto app. They just want to add money, check details, and send it safely. 

Stablecoins Become Useful as Remittances Stay Expensive

This analysis sheds light on why stablecoins are gaining traction in the region. In Argentina, purchases of crypto are now over 70% in USDC and USDT. Stablecoins make up about 52% of the market in Colombia, driven by the weakness of the peso and restrictions on access to U.S. dollar bank accounts. Mexico is roughly 40%, mostly because of USDT flows from the US. Brazil has a more balanced retail market but system-level data shows nearly 90% of the volume of crypto transactions is associated with stablecoins. Users can buy other tokens, but much of the value still flows in digital dollars. 

Conventional money-transfer methods remain expensive in Latin America as well. The typical transfer cost is at least 6% from the sent amount. Banks can even charge an additional fee between 3% and 5% on the foreign exchange spread, despite displaying minimal or even zero fees. In comparison, crypto rails can bring total costs below 2%.

The best read on stablecoins in emerging markets I’ve read in a while 👇 https://t.co/vdm3ZEmZK2

— Amira V (@amiravalliani) May 3, 2026

Indeed, regulation has accelerated the shift. In the past summer, the United States introduced a 1% tax on cash remittances at the federal level. But most digital and crypto rail remittances will not pay the fee. This may encourage even more individuals to choose digital payment channels. Yet, the LATAM markets are all unique in their own ways. While Colombia and Argentina have easier access, Brazil and Mexico are bigger in size.

According to Wang, winning products in this market need five things. They must connect deeply with local payment rails, such as Pix in Brazil and SPEI in Mexico. They also need strong stablecoin liquidity, low spreads, and fast cash-out options. A card feature is useful too, because many recipients want to spend digital dollars directly.

An earn option can also help users grow unused balances, as Wang noted that USDC returns of 4% to 6% beat many local savings accounts. Above all, the product must feel simple and trustworthy for non-technical users.

Digital and Crypto Remittance Players Are Gaining Ground in LATAM

Analysis also shows that legacy remittance firms are losing ground. Western Union’s share of the U.S.-Latin America corridor fell from 29% to 16.8% over a four-year period, while digital-first Remitly grew from 14% to 22.7%. Crypto platforms are also gaining space. Bitso now handles about 10% of U.S.-Mexico flows through stablecoin rails. However, Wang said the next big opportunity may come from underserved non-U.S. routes, such as Venezuela to Colombia or Spain to Ecuador.

Wang stressed that Latin America should not be treated as one market. Each country has different rules, user habits, and payment systems. The teams that win will build country by country. They will serve the 50-year-old sending money to a parent, not only the crypto trader chasing yield. As stablecoins become more common, the real competition will move from technology to trust, local reach, and daily usefulness.

Advertisement