Guatemala’s largest bank integrates blockchain for cross-border payments

Guatemala’s largest bank, Banco Industrial, has integrated crypto infrastructure provider SukuPay into its mobile banking app, allowing locals to more easily receive remittances powered by blockchain technology.

SukuPay’s infrastructure has been fully embedded inside the Zigi payment app, allowing Guatemalans to receive funds from the United States instantly for a $0.99 flat fee, the company disclosed on May 21.

Users of the Zigi app do not need a crypto wallet or an International Bank Account Number (IBAN) to receive the funds, the company said.

SukuPay CEO Yonathan Lapchik told Cointelegraph that the “key to mainstream adoption of blockchain technology is making it invisible to the end-user” so that there are no technical barriers.

“That’s the only way we’ll scale blockchain to billions of people — by building the rails, not forcing people to learn how they work,” said Lapchik.

Established in 1968, Banco Industrial has more than 1,600 service locations throughout Guatemala. As of 2023, it had over 150 million Guatemalan quetzals in assets, equivalent to roughly $20 million US. SukuPay said its integration with Zigi marks one of the first crypto-native protocols to be used inside a major Latin American retail bank.

Guatemala’s largest bank integrates blockchain for cross-border payments

Banco Industrial has a long-term issuer default rating of BB. Source: Fitch Ratings

The bank also has operations in Honduras, Panama and El Salvador and is a key player in local remittance markets.

Remittances are lifelines for Latin America

Remittances, or money sent by migrants to their home countries, play a vital role in Guatemala and the broader region.

The Inter-American Development Bank projected that remittances to Latin America and the Caribbean would total approximately $161 billion in 2024. Monthly remittances typically range from $131 to $648, representing between 6% and 23% of the sender’s average income.

“Remittances are lifelines in this region, but they’re broken,” Lapchik told Cointelegraph.

“Guatemala alone sees $21 billion in remittances every year, and families are losing 6% to 10% of that to fees and delays. These are people sending $300, $400 a month, and they can’t afford to wait days or pay that much just to get money home,” he said, adding:

“Crypto solves this when it’s used the right way. It lets us move money instantly and at a fraction of the cost, integrated into the bank apps people already use.”

Latin America is the second-fastest growing region in terms of crypto adoption, though Guatemala lags behind regional leaders Argentina, Brazil, Mexico, Venezuela and Colombia, according to a 2024 Chainalysis study.

The study cited stablecoins as a primary adoption driver in the region.