- Paxos, a prominent blockchain fintech enterprise, and MercadoLibre, a top online marketplace, have entered into a strategic partnership to provide the Pax Dollar (USDP) stablecoin to Mexican crypto users through the MercadoPago payment service.
- This collaboration brings the potential of blockchain fintech to the forefront of Mexico’s vast crypto space, promising a major impact on the country’s financial transaction landscape.
Breaking the barriers of traditional financial services, blockchain fintech leader Paxos and digital marketplace titan MercadoLibre have teamed up to propel the reach of the Pax Dollar (USDP) stablecoin in Mexico. With this strategic partnership, USDP will be incorporated into the MercadoPago payment platform from June 28, 2023, opening a new era of financial transactions for Mexican consumers.
While Paxos has its operational roots in the United States, it caters to a large customer base in Latin America, with over 60% of its active wallets serving this demographic. This recent endeavor aligns with the company’s vision to penetrate deep into the crypto market, which currently holds more than 12 million users in Mexico alone.
The availability of USDP on the MercadoPago payment system extends the stablecoin services to Mexican customers. This critical addition could serve as a powerful tool for mitigating the exorbitant fees often associated with remittances, offering significant relief to many users.
While Mexico may not lead Latin America in terms of crypto adoption, the country tops the chart when it comes to the volume of transactions. This high level of activity is primarily attributed to the number of remittances sent to Mexico, with the country trailing only behind India in this regard.
Paxos is no stranger to the fintech world. It’s known for its high-profile partnerships, including one with PayPal, and for being the first blockchain entity to receive the green light from the U.S. Securities and Exchange Commission (SEC) to settle U.S.-listed securities.
However, in February 2023, Paxos encountered regulatory turbulence when it received a Wells notice indicating that its Binance-based stablecoin, Binance USD (BUSD), would be classified as a security and, consequently, should have been registered.
In a recent shift, the newly launched cryptocurrency exchange, EDX, decided to change custody providers. They will transition from Paxos to Anchorage Digital, marking a shift towards a noncustodial offering at launch. Despite the unexpected developments and shifting landscape, the collaboration between Paxos and MercadoLibre is poised to redefine the crypto transactional framework in Mexico, offering more choice and financial flexibility to millions of users.
