Polygon records approximately $309 million in Latin America Stable currency Volumes in May
While it is pegged to the dollar stable coins have become a mainstream use case blockchain tech, industry figureheads believe that stable coins from emerging markets will soon also become relevant.
Sandeep Nailwal, co-founder and CEO of the Polygon Foundation, highlighted the increase in activity of these organizations stable coins experienced on top of the Polygon network in May.
“Polygon leads stable currency adoption in LATAM,” he pointed out, revealing that Polygon surpassed all other chains in May, registering $309 million stable currency volumes in the region, with more than half of the active portfolios in the region.
Nailwal underlined the relevance of this nascent, non-dollar movement stable currency volumes in all chains increased 16x in 3 years. Holders are also up 30x.
“We continue to see the same trend landing on Polygon, emerging markets just hit a new monthly high in May with BRLA and COPM both in the top 3,” he revealed.
BRLA is a fully collateralized Brazilian real stable currency with a market capitalization of more than $3.2 million linked to the Pix payment system, while COPM is a company linked to the Colombian peso stable currency.
While Latam has embraced the dollar stable coins due to their proxy function in economies with high inflation and devaluation levels, non-dollar stablecoins would have other functions, including digitizing payments and increasing financial inclusion.
“Emerging market stable coins are something to watch as all the money in the world moves on-chain. Dollars stable coins is making all the headlines for now, but the emerging markets story is just beginning and growing on Polygon,” Nagelwal rounded.
Nailwal isn’t the only one noticing growth in the non-dollar stablecoin sector. A report commissioned by Visa in May found that the total supply of these amounted to $1.2 billion, while monthly transfers registered $10 billion.