Special Announcement goes here!
The world of cryptocurrency has seen the rapid rise of stablecoins, with their applications expanding far beyond just trading. These digital assets, which maintain a fixed value relative to fiat currencies like the US dollar, are transforming cross-border payments, remittances, and everyday financial transactions.
For PsiFi, a blockchain-native remittance platform focused on the U.S.-Mexico corridor, the growing adoption of stablecoins like USDC (USD Coin) is a massive opportunity. Currently, PsiFi leverages USDC to offer fast, low-cost cross-border payments. But with Tether (USDT) dominating key markets, PsiFi plans to add Tether support in its roadmap to further tap into the global remittance market.
In this post, we’ll explore why the increasing demand for stablecoins is great for PsiFi and how supporting multiple stablecoins, including Tether, can supercharge its growth.
In the past five years, stablecoins have exploded in popularity. From just $3 billion in circulation in 2018, stablecoins now exceed $125 billion, growing over 100% year-over-year. What’s more, stablecoins make up 70% of all cryptocurrency transaction volumes, despite representing only 10% of the total cryptocurrency market cap.
In 2022, stablecoins settled more than $11 trillion in payments, surpassing PayPal and almost reaching the level of Visa’s $11.6 trillion in payment volume.
This growing dominance is driven by stablecoins’ versatility in cross-border payments, remittances, and as a hedge against inflation in volatile economies. This is where PsiFi fits in.
PsiFi is building a blockchain-based remittance platform, starting with the U.S.-Mexico corridor — a $60 billion market where 40% of remittances are already digital. The platform currently uses USDC, a stablecoin known for its regulatory compliance and transparency.
USDC is fully backed by U.S. government bonds and cash, making it a highly trusted stablecoin in regulated markets like the U.S. For PsiFi, USDC’s transparency and stability make it a perfect choice for users who want to send funds across borders quickly, securely, and affordably.
However, PsiFi’s long-term vision goes beyond just USDC. Tether (USDT) is by far the most widely used stablecoin in global payments, particularly in high-inflation economies like Latin America, Turkey, and parts of Africa. To fully address the needs of users in these markets, PsiFi plans to add support for USDT, enabling users to choose the stablecoin that best suits their needs.
Tether’s dominance in the stablecoin market is undeniable. With a market cap of over $82 billion, USDT is the most used stablecoin globally, especially in regions where financial instability is common. More than 75% of active stablecoin addresses transact less than $1,000 per week, and most of this activity is powered by USDT.
Tether’s popularity is especially strong in emerging markets. For example, more than one-third of Latin American consumers have used stablecoins to make everyday purchases. In countries like Argentina, where inflation has exceeded 100%, stablecoins provide the stability people need to preserve their wealth. Similarly, in Turkey, where inflation hit 80.5% in 2022, millions have turned to stablecoins to safeguard their assets.
By supporting USDT alongside USDC, PsiFi can offer more flexibility to users in these high-inflation economies. This is crucial for remittance users, who often seek the fastest and cheapest options for sending money across borders.
Cross-border payments represent a huge opportunity for stablecoins, particularly in emerging markets where traditional financial systems are inefficient and expensive.
In Latin America, 51% of consumers have already made at least one cryptocurrency transaction. This region, as well as parts of Africa and Turkey, has seen a surge in stablecoin adoption, particularly for remittances. Stablecoins like USDC and USDT allow users to bypass the high fees and slow processes of traditional remittance services.
PsiFi’s focus on remittances is perfectly aligned with this trend. By offering instant, low-cost transfers through blockchain technology, PsiFi can disrupt the traditional remittance industry and provide users with a faster, more affordable alternative. And by integrating Tether, PsiFi can capture an even larger share of the global remittance market.
USDC is PsiFi’s primary stablecoin for a reason: it’s highly trusted, transparent, and compliant with regulations. Circle, the issuer of USDC, ensures that each USDC token is backed 1:1 by U.S. government bonds and cash, providing peace of mind to users.
For PsiFi, using USDC makes sense, especially in the highly regulated U.S.-Mexico corridor. USDC’s emphasis on compliance makes it a natural choice for users who need to trust that their funds are secure and fully backed.
As PsiFi grows, USDC will continue to be a cornerstone of the platform. But adding Tether support will expand the platform’s appeal to users in regions where USDT dominates.
Tether’s dominance in emerging markets, especially on the Tron blockchain, makes it a critical asset for remittances. Tron’s low fees and fast transaction times make it ideal for small, frequent transactions — exactly the type of transfers that dominate the remittance market.
PsiFi plans to add Tether support to cater to users in regions where USDT is the preferred stablecoin. This will allow the platform to expand beyond the U.S.-Mexico corridor and into other key remittance markets, such as Latin America, Turkey, and parts of Africa.
By supporting multiple stablecoins, PsiFi will provide users with more options and greater flexibility, ensuring that the platform can meet the diverse needs of remittance users across the globe.
The global demand for stablecoins is skyrocketing, and PsiFi is well-positioned to benefit from this trend. By using USDC as its primary stablecoin, PsiFi offers a safe, reliable, and compliant remittance solution. But as the platform grows, adding Tether support will open up new markets and cater to users in regions where USDT is the dominant stablecoin.
PsiFi’s ability to adapt to these changing dynamics in the stablecoin landscape will be key to its success. With the growing adoption of stablecoins in cross-border payments, PsiFi is poised to become a major player in the remittance space, offering fast, low-cost, and secure transactions for users around the globe.
Supporting both USDC and Tether will allow PsiFi to unlock the full potential of stablecoins and provide users with a seamless experience as they send and receive funds across borders.
PsiFi is a blockchain-native remittance platform focused on cross-border payments, currently supporting USDC with plans to integrate Tether in the future.
Learn more at http://psifi.app
