Bitso, a major Latin American cryptocurrency exchange, is collaborating with Circle, the stablecoin operator, to launch a new cross-border payment tool between Mexico and the United States.
The company announced on Thursday that the integration with Circle payment solutions aims to give Mexicans a new way to send and receive payments to and from the United States.
The new tool, Bitso Shift, uses cryptocurrency to enable low-cost and instant cross-border payments that are available 24 hours a day, seven days a week, allowing users to instantly exchange between Mexican pesos and USD-backed stablecoins.
The new offering aims to provide individuals in Mexico with easier and more affordable access to the USD while also increasing the transparency of USD transactions in the country.
According to the International Trade Administration of the United States Department of Commerce, non-account holders from Mexico can deposit up to $300 per day, but no more than $1,500 per month. Account holders are limited to a monthly deposit of $4,000 per account. Simultaneously, there appear to be no restrictions on the transfer of US dollars into or out of Mexico.
“Wire transfers to Bitso Shift are processed in 24 to 48 hours through fully regulated institutions,” Bitso stated in the announcement.
“The opportunity for Circle and USDC to be a part of making cross-border exchanges seamless between the United States and Mexico — the world’s largest exchange corridor — is enormous,” said Circle co-founder and CEO Jeremy Allaire.
The new offering, according to Bitso co-founder and CEO Daniel Vogel, aims to help Mexican freelancers and businesses by addressing some of the “financial sector’s most pressing problems.”
Bitso, founded in 2014, is one of the largest cryptocurrency platforms in Latin America, backed by large crypto companies such as Coinbase and Ripple. Bitso is the primary crypto service provider for El Salvador’s official Bitcoin (BTC) wallet, Chivo. From 1 million users in July 2020 to nearly 3 million users by September 2021, the exchange’s user base nearly tripled.