Payment processor Remitly is preparing to roll out its own stablecoin to facilitate faster and cheaper international money transfers. The move is aimed at leveraging blockchain technology to improve the efficiency and reduce the costs of cross-border payments.
Remitly intends to integrate stablecoin functionality into its global payment network, which will represent a significant change in how the remittance company facilitates international money transfers.
The Seattle-based fintech company, renowned for its services to immigrants and overseas laborers, is committed to enhancing users’ speed, reliability, and cost efficiency in more than 170 countries.
The company announced on Monday that it will commence the integration of stablecoins into three critical areas of its business: global disbursements, treasury operations, and value storage.
Stablecoins are digital assets linked to fiat currencies, such as the US dollar, to preserve pricing stability. This makes them an appealing option for electronic payments in emerging markets.
Stablecoin Distributions Coming to Remitly Transfers via Bridge
The initial action of Remitly is the introduction of Remitly Wallet, a digital wallet that supports both fiat and stablecoins and is multi-currency. The product is presently undergoing beta testing and is anticipated to be operational by September.
The wallet will enable users to store and utilize funds flexibly across borders, which the company claims is particularly beneficial in countries experiencing currency volatility or inflation.
Simultaneously, Remitly is expanding its global transmission network to include stablecoin payout options through a partnership with Bridge, a stablecoin infrastructure provider that Stripe owns.
Customers will be able to receive funds in stablecoins, which will be directly transferred from Remitly’s current fiat system to supported wallets, in a few select markets beginning in September.
USDC Has Been Incorporated into Remitly’s Real-Time Treasury Operations
The company’s fiat payment network has expanded to more than 170 countries. It facilitates a variety of delivery methods, such as cash collection, mobile wallets, and bank transfers, at more than 470,000 locations.
Remitly’s objective is to further enhance the flexibility and reach of its services by incorporating stablecoins.
Stablecoins such as USDC are also integrated into Remitly’s internal treasury operations. The company claims it can move funds instantaneously across time zones and during weekends by tokenizing portions of its US dollar reserves. This reduces the necessity for pre-funded local currency pools and unlocks capital for more efficient liquidity management.
The stablecoin implementation is a continuation of Remitly’s initial crypto involvement. The company provided fiat off-ramps for platforms such as Novi and Coinbase in 2021, enabling users to convert crypto assets into local currency.
This experience was the basis for its methodology, which connects Web3 infrastructure to actual financial requirements.
Stablecoins Positioned to Lower Global Transfer Costs
The organization asserts that the relocation is in response to the changing requirements of its clientele. Concurrently, it is indicative of more extensive industry developments.
According to the World Bank, the average global remittance fee is 6.26%. These costs could be substantially reduced by stablecoins, particularly in regions with inadequate or unreliable banking infrastructure.
Concurrently, Remitly observes an increasing demand among its users, including freelancers, small businesses, and families, for methods to safeguard value and mitigate the risks associated with local currency depreciation.
Stablecoins, particularly those backed by the dollar, provide a means of preserving money in a form that is resistant to local inflation while still being liquid.
Remitly is establishing itself at the intersection of traditional finance and digital assets by integrating blockchain-based settlement with its licensed and compliant fiat network. It anticipates that the action will enhance user confidence and expand access to cross-border financial instruments.
