Stabecoin Remittances:- In an exciting development for the growing adoption of stablecoins, VirgoPay, a subsidiary of VirgoCX Global Holdings, has announced a strategic partnership with Vaulta, formerly known as EOS.
To enhance its stablecoin-based remittance services, both of the Canada-based Web3 firms are set to launch VirgoPay, a stabelcoin- supported remittance application.
Cross-border payments have historically been slow, expensive, and often inaccessible, particularly in regions lacking stable banking infrastructure. The to-be-launched VirgoPay intends to tackle these issues by leveraging stablecoins to provide faster, more affordable, and secure financial solutions.
VirgoPay – the stablecoin based remittance network
Scheduled for the launch in May 2025, VirgoPay aims to simplify the process of sending funds or money particularly in the form of remittances, across borders by global users.
VirgoPay will allow users to add funds using any traditional local payment methods such as bank transfers, e-transfers, and card processing, or directly from a cryptocurrency wallet.
They can select then their preferred currency and track the status of their payments in real-time post-transaction. On the other end, recipients will have access to the funds in their chosen currency upon completion of the transaction.
And by integrating Vaulta’s high-throughput blockchain infrastructure – which will serve as the default transaction and settlement layer for VirgoPay – it aims to settle these payments in seconds rather than days.
Virgo expects to process more than 2 billion Canadian dollars through its over-the-counter (OTC) platform by 2025.
Notably, EOS blockchain network’s digital coin had been struggling for 7 years – losing more than 100% of its value from ATH. However, it has witnessed a considerable surge after EOS rebranded to Vaulta on March 19 this year.
Remittance as the Evolving Usecase of Stablecoin
Stablecoins are increasingly utilized for cross-border payments and remittances due to their efficiency and cost-effectiveness.
They help users in eliminating up to 70% of the fees typically associated with traditional remittance services. As per the World Bank data of 2023, transaction fees by stablecoins are often less than 1%, compared to the global average remittance fee of 6.2%.
According to Coinbase report published in August 2024 – Stablecoins and the New Payments Landscape – there was $10.8 trillion worth of transactions settled via stablecoins in 2023. Among this, c. $2.3 trillion stemmed from “organic activities”—a category that includes cross-border payments, person-to-person remittances, and merchant transactions.
However, the report highlights that stablecoins transactions are still dominantly used for Business and consumer payments vis-a-vis direct usercase of global remittances.
Initial Rollout in Key Markets
As per the Press Release, the initial rollout will focus on key global corridors, including the United States, Hong Kong, Canada, Argentina, Brazil, and Australia. A subsequent phase will then expand into additional markets across South America and the Middle East. This is going to highly benefit the remittance industry which is projected to exceed $1 trillion in volume by 2029.
The VirgoPay launch is scheduled for May 2025, subject to final confirmation.
Nonetheless, the launch exemplifies the potential of combining stablecoin technology with advanced blockchain infrastructure to create efficient, accessible, and cost-effective financial solutions on a global scale.
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