Tether is building a tower in El Salvador. Circle is driving adoption across Latin America with game-changing partnerships.

Stablecoins, once viewed simply as tools for stability, are now reshaping finance across the region and beyond. With their practical uses in cross-border payments, savings, and remittances, these digital dollars are evolving into key players in the global economy.

Stablecoins like USDT (Tether) and USDC (Circle) have long been valued for their stability in a volatile crypto market. By pegging their value to traditional currencies like the US dollar, they offer a dependable bridge between fiat and cryptocurrency. But these digital assets are no longer just tools for hedging volatility—they’ve become essential in global transactions and financial inclusion.

The December 2024 Chainalysis report revealed that stablecoins have overtaken Bitcoin as the preferred cryptocurrency for daily transactions. Their uses now extend beyond crypto trading, with applications in peer-to-peer payments, cross-border remittances, and value storage during economic instability.

However, this increased utility hasn’t come without challenges. The same report found that stablecoins account for up to 63% of illicit crypto transaction volume. Yet their traceability and issuer oversight—like freezing funds tied to illegal activities—make them poor tools for large-scale criminal operations.

Stablecoin adoption is surging globally, particularly in emerging markets. Latin America and Sub-Saharan Africa have led this growth, with year-on-year (YoY) transaction increases of over 40%. Other regions, like Eastern Asia and Eastern Europe, are also experiencing notable gains.

The numbers behind the surge

As of January 2025, the stablecoin market boasts a $213.8 billion market cap and a $115.02 billion transaction volume. Tether dominates with a $137.4 billion market cap, while Circle's USDC holds $46.25 billion. Both companies are driving growth with bold moves in Latin America.

Tether’s tower in El Salvador

Tether has cemented its commitment to Latin America by announcing plans to relocate its operations to El Salvador.

Tether is moving to El Salvador.
We will build our Tether Tower in San Salvador.
Many others will follow.
❤️🇸🇻 pic.twitter.com/fm19zUfydr

— Paolo Ardoino 🤖🍐 (@paoloardoino) January 15, 2025

The Central American country, known for its pro-crypto stance under President Nayib Bukele, has welcomed this move enthusiastically.

Welcome home 🇸🇻 https://t.co/bIYKKl84oN

— Nayib Bukele (@nayibbukele) January 13, 2025

Tether’s expansion highlights the growing synergy between Latin America’s forward-thinking governments and stablecoin providers, paving the way for increased adoption across the region.

Circle’s expansion across the region

Circle, the issuer of USDC, has also set its sights on Latin America. In 2024, USDC circulation grew by 78%, achieving faster growth than any other large stablecoin. Circle has become the first major stablecoin issuer to comply with the European Union's MiCA framework, boosting trust and usability.

🌍 The 2025 State of the USDC Economy Report is here!

USDC continues to demonstrate its strength as a leading platform for global financial inclusion.

Dive into the highlights from the past year: https://t.co/5H9fcBzqk2

USDC circulation grew 78% year-over-year, outpacing the… pic.twitter.com/31RRgwvYBd

— Circle (@circle) January 14, 2025

In Latin America, Circle’s partnership with Nubank, the largest digital bank in the region, marks a major milestone. Through the Nubank Cripto app, users holding at least 10 USDC in affiliated wallets can earn a 4% annual return.

This is a huge milestone for stablecoins and USDC in Latin America if not the world. One of the most innovative banks in the world is rolling out digital dollars to 100M customers. Go @nubank !!https://t.co/NMe3bm6zy9

— Jeremy Allaire - jda.eth / jdallaire.sol (@jerallaire) January 14, 2025

These daily credited rewards offer liquidity and make stablecoin ownership more appealing to mainstream users.

A new era for stablecoins

The strategic moves by Tether and Circle highlight how stablecoins are evolving beyond their initial purpose. Their adoption in Latin America showcases the region’s potential to lead in digital financial innovation.

As these two giants continue to innovate, the influence of stablecoins is likely to expand further, bridging the gap between traditional finance and the dynamic world of crypto. In a region where financial inclusion remains a priority, stablecoins are proving to be a vital tool for economic empowerment.