Blocks TBD partners with Circle to create global Fiat crypto bridges

TBD — a Bitcoin-focused wing of Jack Dorsey’s payments company Block — has partnered with Circle to help expand on and off the ramps between the crypto and fiat worlds.

The teams intend to power some of crypto’s premier real-world use cases, from cross-border remittances to stablecoin self-custody.

Expand web 5

According to TBD’s announcementthe team will begin supporting Circle’s stablecoin, USDC, on a variety of applications to make it easier to build on the tbDEX protocol Web 5 platform.

The tbDEX protocol is an attempt to create a decentralized Bitcoin exchange, making it easier to bridge the gap between the fiat and crypto worlds. Currently, moving between each use requires centralized exchanges, which collect identifying information from users due to KYC requirements.

As a solution, TBD’s “Web 5” project intends to decentralize data storage and give users back control over their identity using the Bitcoin blockchain.

“An open approach solves for decentralized identity and enables safe, scalable and frictionless payments to work for consumers and merchants using stablecoins.” stated TBD.

In addition to creating global crypto-to-fiat payment rails, TBD said the partnership would help promote “faster, lower-cost remittances globally,” from the US to Mexico.

Cryptocurrencies have proven effective for efficient and popular in the Global South for use in remittance payments. A chain analysis report this month found that India and Pakistan – two countries with large remittance markets – were two of the top ten countries in terms of crypto adoption. ONE Tongan Member of Parliament – Lord Fusitu’a – has even pushed to make Bitcoin legal tender in his country for its remittance benefits.

Fight against hyperinflation

Finally, the partnership intends to help individuals in hyperinflationary environments store their wealth using self-managed stablecoins. This is especially so for people who otherwise have limited access to US dollars.

“This partnership aims to have a significant impact on people’s everyday financial lives,” TBD said. “It both advances the potential for crypto to emerge as a mainstream payment system, while establishing decentralized identity as the model for building trust in a scalable and privacy-preserving way.”

Block Head Jack Dorsey has in the past tired that the US dollar itself is already undergoing hyperinflation. As of August, CPI inflation in the US was at 8.3% annually – significantly above the target rate of 2%.