• Blockchain fintech company Paxos has partnered with online marketplace Mercado Libre to introduce the Pax Dollar (USDP) stablecoin to users in Mexico. The integration will enable transactions through MercadoPago, the digital wallet app by Mercado Libre.
• With over 60% of its active wallets supporting customers in Latin America, Paxos aims to solidify its position as a leading provider of digital assets in the region.

Blockchain fintech firm Paxos has collaborated with Mercado Libre, an online marketplace, to bring its Pax Dollar (USDP) stablecoin to users in Mexico. This strategic partnership allows for seamless transactions using MercadoPago, the digital wallet application provided by Mercado Libre.

Paxos, driven by its vision to become a prominent leader in digital assets across the region, views this initiative as a significant step towards its goal. Current data indicates that more than 60% of Paxos’ active wallets cater to customers in Latin America, highlighting the demand for digital assets in the region.

Mercado Pago’s adoption of USDP in Mexico strengthens the existing partnership between these fintech companies. Mexican users will now have access to the regulated stablecoin through Mercado Pago, expanding their opportunities in the digital asset ecosystem.

Arnoldo Reyes, Head of Latin America at Paxos, emphasized the increasing demand for transformative technologies among digital asset consumers in the region. He stated that Mexico is one of the most active marketplaces for digital assets, with millions of users seeking key financial services. The launch of USDP within Mercado Pago demonstrates Mercado Libre’s commitment to democratizing access to commerce and financial services in Latin America through innovative digital asset solutions.

The Pax Dollar, USDP, is a stablecoin issued by Paxos and subject to rigorous 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 adhere to the attestation standards set by the American Institute of Certified Public Accountants (AICPA), ensuring transparency and accountability.

The stablecoin market has witnessed 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 regulations have amplified globally.

Italy’s top banking authority recently released a report urging regulators to establish financial conduct standards for stablecoin issuers. It emphasized the importance of regulating stablecoins due to their close association with the decentralized finance (DeFi) market.

The Hong Kong Monetary Authority (HKMA) is also taking steps towards a regulatory framework for stablecoins. Seeking public views on the ecosystem, HKMA aims to introduce this framework by the end of 2024.

As Paxos expands its reach with the introduction of USDP in Mexico, the partnership with Mercado Libre’s MercadoPago demonstrates the growing demand for digital assets and stablecoins in Latin America. With regulatory bodies worldwide exploring stablecoin regulations, the industry is undergoing a transformative phase that aims to establish a secure and transparent environment for users and participants alike.