Stablecoin firms are overlooking a $112 billion opportunity in Latin American remittance corridors that do not involve the US-Mexico route. That is according to Bybit Chief Marketing Officer Claudia Wang. She argues that most fintechs have focused too narrowly on the $61.8 billion US-Mexico corridor. They are missing faster-growing markets elsewhere in the region.
Stablecoin remittance LATAM: The $112B opportunity outside US-Mexico
Wang shared her analysis in a post on X on May 4, 2026. She noted that the US-to-Mexico remittance corridor shrank by 4.5% in 2025. Meanwhile, other Latin American corridors expanded. The total Latin American remittance market is worth $174 billion. The non-US-Mexico portion stands at about $112 billion.
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“The corridors that look ‘hot’ right now are not the corridors most fintechs are optimized for,” Wang wrote. She pointed to Venezuela-to-Colombia, Argentina-to-Bolivia, and Spain-to-Ecuador as examples. These routes are growing faster but receive less attention from crypto and fintech companies.
Wang spent six months studying the region. She concluded that treating Latin America as a single market is a mistake. “Brazil, Mexico, Argentina, Colombia — each needs different licenses, different rails, different stablecoins, different marketing,” she said. “The companies winning here run country-specific stacks, not regional ones.”
This suggests that stablecoin firms must adapt their strategies to local conditions. A one-size-fits-all approach will not capture the full $112 billion opportunity.
How US immigration policy is reshaping remittance flows
Wang highlighted a key driver of the shift: US immigration policy. The US-to-Central America corridor “is exploding,” she said. Remittances to Honduras rose 19% in 2025. El Salvador saw an 18% increase. Guatemala recorded a 15% rise.
By contrast, remittances to Mexico fell 4.5% to $61.8 billion. Wang attributed this divergence to different migrant behaviors. “Migrants from Central America are sending more home — faster, larger amounts — to hedge against deportation risk,” she explained. Mexico has a “more established and documented diaspora” and does not show the same “panic-send behavior.”
Industry watchers note that this trend could persist. US immigration enforcement policies are unlikely to change soon. This means stablecoin firms targeting Central American corridors may find a receptive audience.
The role of stablecoin infrastructure in LATAM remittance
Traditional remittance providers like Western Union and MoneyGram have long dominated the Americas. But both companies announced plans to roll out stablecoin infrastructure after the GENIUS Act passed in July 2025. Western Union is building its own US dollar-backed stablecoin, USDPT. It is in the final stages of readiness and expected to launch in May 2026.
Crypto-native companies are also competing. Binance, Bitso, Strike, and Felix Pago all have a presence in the LATAM remittance market. Banks, retailers, and telecommunications companies such as Walmart and Tigo are also getting involved, Wang noted.
This competition is intensifying. The implication is that stablecoin firms need to move quickly to capture market share before traditional players solidify their positions.
Latin Americans want to hold stablecoins, not just move them
Wang made another key observation. Many Western fintechs misunderstand what Latin American users actually want. The “killer app” in the region is holding stablecoins, not using them for transactions.
“Users don’t want to ‘use’ stablecoins for a transaction and convert back to local currency,” Wang said. “They want to hold dollars. The transaction is the side effect.”
This insight has major implications for product design. Stablecoin firms should build services that allow users to store value in dollar-pegged assets. Remittance is just one feature within a broader savings tool.
Wang predicted that the fintechs winning the next decade in Latin America will “combine local rails, stablecoin liquidity, trust and closed-loop economics — remit → hold → spend → earn.”
The user profile mismatch in LATAM remittance
Wang also criticized the crypto industry for targeting the wrong user. Most products are built for a typical 25-year-old crypto trader. But the average remittance sender is 40 to 60 years old. This person is not necessarily tech-savvy.
“If your product makes a 50-year-old factory worker in New Jersey think for more than 30 seconds before sending $300 to his mom in Honduras, you’ve already lost,” Wang said. “The crypto industry has spent five years optimizing for the wrong user. The retail remittance customer in LATAM doesn’t want to ‘self-custody.’ They want to know the money landed.”
This suggests that stablecoin firms need to simplify their user interfaces. Trust and reliability matter more than advanced crypto features for this demographic.
Non-US corridors: Small but underserved
Wang noted that remittance corridors not involving the US are small in absolute terms. But they are “barely served” by US money transmitter operators. They are also “almost untouched by crypto rails.”
This creates an opening for stablecoin firms. These corridors may not generate huge volumes individually. But collectively, they represent a significant opportunity. Early movers could establish strong positions before larger competitors arrive.
Data from Wang’s analysis shows that the top remittance corridors in 2025 included several intra-Latin American routes. These are often overlooked by global fintechs focused on the US-Mexico route.
Conclusion
The stablecoin remittance LATAM opportunity is real and substantial. Bybit’s Claudia Wang has laid out a clear case. The $112 billion non-US-Mexico market is growing faster than the dominant corridor. US immigration policy is driving demand in Central America. Users want to hold stablecoins, not just transact with them. And the average remittance sender is older and less tech-savvy than crypto companies assume.
Stablecoin firms that adapt to these realities could capture a large share of this market. Those that continue to focus on the US-Mexico corridor may miss the bigger picture.
FAQs
Q1: What is the $112 billion opportunity for stablecoin firms in LATAM?
The opportunity refers to the total value of remittance flows in Latin America that do not involve the US-Mexico corridor. This includes intra-regional flows and corridors from other countries like Spain.
Q2: Why did the US-Mexico remittance corridor shrink in 2025?
According to Bybit’s Claudia Wang, the decline is due to Mexico having a more established diaspora that does not show panic-send behavior. Meanwhile, Central American migrants are sending more money home to hedge against deportation risk.
Q3: Which remittance corridors are growing fastest in LATAM?
Corridors from the US to Honduras, El Salvador, and Guatemala grew 19%, 18%, and 15% respectively in 2025. Intra-regional routes like Venezuela-to-Colombia and Argentina-to-Bolivia are also expanding.
Q4: How are traditional remittance companies responding to stablecoin competition?
Western Union and MoneyGram both announced plans to roll out stablecoin infrastructure after the GENIUS Act passed. Western Union is building its own US dollar-backed stablecoin called USDPT.
Q5: What do Latin American remittance users actually want from stablecoin products?
They want to hold stablecoins as a store of value in US dollars, not just use them for transactions. The ability to remit, hold, spend, and earn within a single platform is key.
Q6: What mistake are crypto companies making in the LATAM remittance market?
They are building products for young crypto traders rather than the average remittance sender, who is 40 to 60 years old and values simplicity and trust over advanced features.
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