The partnership is aimed at improving stablecoin adoption in Latin America by combining Trace Finance’s foreign exchange (FX) liquidity and local payment rails with Borderless.xyz’s orchestration platform.
As Brazil continues to emerge as a key market for stablecoin transactions, the integration is expected to reduce FX transaction costs while improving transaction speed, transparency, and security for institutions and enterprises. Brazil’s high remittance volume and demand for faster settlement options make it a strategic region for Borderless.xyz’s expansion.
Trace Finance’s infrastructure supports BRL (Brazilian real) on/off ramps, named accounts, and third-party payments. This integration enables Borderless.xyz partners to access near mid-market rates with instant settlement and deep local connectivity.
By leveraging Trace Finance’s bare-metal FX liquidity, Borderless.xyz improves its capability to orchestrate real-time stablecoin settlements across borders. The integration supports the company’s vision of unifying traditional finance and DeFi by offering better access to real-world assets (RWAs) and digital currencies.
Trace Finance processes hundreds of millions of USD monthly, and its inclusion in the Borderless.xyz network is expected to unlock new corridors and payment opportunities for businesses worldwide.
Stablecoins have gained significant traction in Latin America due to persistent inflation and currency volatility in key markets like Brazil and Argentina. In Argentina, for example, annual inflation reached over 200% in 2023, driving citizens and businesses to seek alternatives to the rapidly devaluing peso. Similarly, Brazil has faced a steady depreciation of the real, further pushing stablecoins as a hedge against inflation. Stablecoins like USDC and Tether offer a stable store of value, providing a critical alternative to local currencies in times of economic instability.
Additionally, Latin America is one of the world's largest remittance corridors, with over USD 100 billion in remittances flowing into the region annually. Stablecoins have increasingly been adopted as a cost-effective and faster means of transferring money across borders, reducing reliance on traditional money transfer services that can charge high fees. This trend is reinforced by regulatory momentum in the region, particularly Brazil, which in 2023 introduced regulatory measures defining crypto assets within its legal framework. Such moves are expected to foster more institutional adoption of stablecoins, improving their legitimacy and integration into mainstream financial systems. This convergence of economic pressures, regulatory developments, and technological innovation is accelerating the adoption of stablecoins as an essential tool for both individuals and businesses in Latin America.
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