- Blockchain fintech company Paxos has teamed up with online marketplace Mercado Libre to introduce the Pax Dollar (USDP) stablecoin to users in Mexico. The integration enables transactions through MercadoPago, Mercado Libre’s digital wallet app.
- With more than 60% of its active portfolios supporting clients in Latin America, Paxos aims to solidify its position as a leading digital asset provider in the region.
Blockchain fintech company Paxos has partnered with Mercado Libre, an online marketplace, to bring its Pax Dollar (USDP) stablecoin to users in Mexico. This strategic partnership ensures seamless transactions using MercadoPago, Mercado Libre’s digital wallet application.
Paxos, driven by its vision to become a prominent leader in digital assets across the region, sees this initiative as an important step towards its goal. Current data indicates that more than 60% of Paxos’ active portfolios target clients in Latin America, highlighting the demand for digital assets in the region.
Mercado Pago’s adoption of USDP in Mexico strengthens the existing collaboration between these fintech companies. Mexican users can now access the regulated stablecoin through Mercado Pago, increasing their opportunities in the digital asset ecosystem.
Arnoldo Reyes, Head of Latin America at Paxos, highlighted the growing demand for transformative technologies among consumers of digital assets in the region. He stated that Mexico is one of the most active markets for digital assets, with millions of users looking for key financial services. The launch of USDP within Mercado Pago demonstrates Mercado Libre’s commitment to democratizing access to trade and financial services in Latin America through innovative digital asset solutions.
The Pax Dollar, USDP, is a stablecoin issued by Paxos and subject to strict regulatory oversight by the New York State Department of Financial Services. The stablecoin’s reserves consist of cash and cash equivalents, and its attestation reports are independently issued by WithumSmith+Brown, PC, an accounting firm. These reports meet attestation standards established by the American Institute of Certified Public Accountants (AICPA), ensuring transparency and accountability.
The stablecoin market has experienced significant growth over the past decade. However, it has also faced challenges and concerns. In light of recent events such as the collapse of TerraUSD (UST) and the subsequent FTX implosion, calls for stablecoin regulation have increased globally.
Italy’s top banking authority recently released a report urging regulators to establish financial conduct standards for stablecoin issuers. It highlighted the importance of regulating stablecoins due to their close connection to the decentralized finance (DeFi) market.
The Hong Kong Monetary Authority (HKMA) is also taking steps towards a regulatory framework for stablecoins. Looking for public opinion on the ecosystem, HKMA aims to introduce this framework by the end of 2024.
While Paxos expands its reach with the introduction of USDP in Mexico, the partnership with Mercado Libre’s MercadoPago shows the growing demand for digital assets and stablecoins in Latin America. With regulators around the world scrutinizing stablecoin regulation, the industry is undergoing a transformative phase that aims to establish a safe and transparent environment for both users and participants.
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