What happened?
Remitly, a Seattle-based fintech company, is introducing stablecoin functionality to its global payment network. They announced plans to integrate stablecoins across their operations, including value storage, treasury management, and global disbursements. This move aims to enhance speed, reliability, and cost efficiency for money transfers in over 170 countries.
Who does this affect?
This development primarily benefits Remitly’s user base of immigrants and overseas workers who rely on international remittances. It also impacts freelancers, small businesses, and families seeking to preserve value amidst currency volatility. The enhanced services can significantly aid users in countries with inflation challenges or unstable banking infrastructure.
Why does this matter?
The introduction of stablecoins could lower global transfer costs, which currently average 6.26% according to the World Bank. By incorporating stablecoins, Remitly is tapping into broader industry trends that offer customers better efficiency and protection against local currency risks. This strategic move strengthens Remitly’s position at the intersection of traditional finance and digital assets, potentially increasing its market impact and user trust.