Polygon Dominates Latam: How the Network Processed $309 Million in Stablecoins Last Month
Sandeep Nailwal, co-founder of the Polygon Foundation, highlighted that the network processed over $309 million in stablecoin volumes from emerging markets in May, leading all other blockchains in Latin America. He emphasized the growing importance of non-dollar stablecoins, noting that their supply has increased 16-fold over the last six years and that this trend is ‘just getting started.’
According to Nailwal, Polygon surpassed other chains in Latin America, with over half of the active wallets in the region using the network for stablecoin transactions. The monthly high in May was driven by stablecoins like BRLA, a fully collateralized Brazilian real stablecoin with a market capitalization exceeding $3.2 million and integration with the Pix payment system, and COPM, a Colombian peso-pegged stablecoin.
While dollar-pegged stablecoins have gained popularity in Latin America as a hedge against inflation and currency devaluation, Nailwal argued that non-dollar stablecoins serve different purposes, including digitizing payments and enhancing financial inclusion. ‘Emerging market stablecoins are the thing to watch as all the world’s money moves on-chain. Dollar stablecoins get all the headlines for now, but the emerging market story is only just getting started, and it’s growing on Polygon,’ he said.
The rise of non-dollar stablecoins is not limited to Polygon. A Visa-commissioned report from May found that the total supply of these stablecoins reached $1.2 billion, with monthly transfers registering $10 billion. Additionally, a report by The Digital Chamber found that 71% of Latin American institutions are now using stablecoins for cross-border payments, a trend expected to accelerate with incoming crypto-friendly regulations.