Circle, the company behind the U.S. dollar-pegged stablecoin USDC, is expanding its footprint in the Philippines through a new local partnership. On October 10, Circle announced a strategic collaboration with Coins.ph, a prominent cryptocurrency exchange and digital wallet provider in the Philippines.
As part of this partnership, Circle and Coins.ph will join forces to raise awareness about USDC payments and facilitate reduced cross-border remittance fees, as well as expedite transactions for Filipinos. The companies highlighted that by 2022, the average cost of sending $200 to Asia is projected to be 5.7%, according to data from the World Bank. The Philippines, in particular, faces complications in remittance for the unbanked population, which constituted 44% of the adult population in 2021, as reported by the Bangko Sentral ng Pilipinas.
Circle and Coins.ph, in a joint statement, emphasized that "with remittance flows reaching a staggering $36.1 billion in 2022 alone, remittances remain an important contributor to the Philippine economy." However, they noted that traditional remittance channels often involve high fees and lengthy transaction processing times.
This new partnership between Circle and Coins.ph aims to improve the existing remittance landscape, starting with the Philippines, one of the world's largest remittance destinations. The project encompasses educational initiatives and community engagement efforts designed to help overseas Filipinos learn to use USDC for their remittances.
Wei Zhou, CEO of Coins.ph, underscored the partnership's goal to demonstrate how USDC can provide faster, more cost-effective, and convenient remittance options for their 18 million Filipino users and their families and loved ones abroad. He also emphasized that this move reflects Coins.ph's commitment to offering innovative services that have a meaningful impact on users' daily lives.
Coins.ph, established in 2014, is a major cryptocurrency exchange in the Philippines that allows users to pay bills and send money through its digital wallet. While USDC is not the only stablecoin available on the Coins.ph exchange, it has garnered some trading volume. At the time of this announcement, USDC's daily trading volume on Coins.ph reached $44,500, accounting for about 13% of Tether's daily trading volume, a prominent rival stablecoin. The exchange's daily trading volume is approximately $1 million according to data from CoinGecko.
