In a move set to alleviate the burden of exorbitant remittance fees for customers, Paxos, the pioneering blockchain finance company, has joined forces with MercadoLibre, a leading online marketplace, to introduce the Pax Dollar (USDP) to the Mexican crypto market. This groundbreaking collaboration, announced on June 28th, will utilize MercadoLibre’s widely-used payment service, MercadoPago, to introduce USDP in Mexico.
Through this partnership, all MercadoPago users in Mexico will gain access to USDP, offering a gateway to stablecoins and potentially reducing the necessity for high remittance costs. This development is particularly significant given that Latin America houses most of MercadoLibre’s wallet users, despite the company’s American origins.
Paxos, renowned for its fintech prowess and successful ventures, achieved a notable milestone when the US Securities and Exchange Commission (SEC) approved it as the first blockchain company authorized to settle US-listed securities. However, in February 2023, Paxos encountered a regulatory challenge when it received a Wells notice suggesting that its Binance-related stablecoin, Binance USD (BUSD), could be classified as securities and required registration.
Shortly after that, the New York Department of Financial Services mandated Paxos to sever ties with Binance and discontinue the issuance of BUSD. Despite this setback, Paxos remains an influential player in the blockchain industry, leveraging its expertise in partnership with MercadoLibre.
This collaboration between Paxos and MercadoLibre has the potential to revolutionize the Mexican cryptocurrency economy, resulting in significant transformations in money transfers and driving greater adoption of cryptocurrencies in the region. By granting users access to stablecoins via MercadoPago, individuals will have an alternative to traditional remittance methods that incur substantial fees.
The introduction of USDP through MercadoLibre’s platform represents a user-friendly approach, simplifying the process for Mexicans to engage with cryptocurrencies and facilitating the seamless flow of funds across borders. Consequently, this move could have far-reaching implications, empowering individuals with more control over their finances and reducing their reliance on costly remittance services.
Moreover, Paxos’ track record as a fintech pioneer and MercadoLibre’s extensive reach in the Latin American market positions this partnership as a game-changer for the Mexican crypto ecosystem. It sets the stage for a new era of financial inclusivity and innovation, propelling Mexico to the forefront of cryptocurrency adoption in the region. With the implementation of stablecoins and the reduced financial burden on customers, the Mexican crypto market is poised for unprecedented growth and prosperity.
