Paxos and MercadoLibre Collaborate to Introduce USDP to the Mexican Market

Blockchain fintech company Paxos and leading online marketplace MercadoLibre have announced a strategic partnership to bring the Pax Dollar (USDP) stablecoin to the Mexican market through the MercadoPago payment service. The collaboration, effective as of June 28, aims to provide greater financial accessibility and convenience to MercadoPago customers across Mexico.

While Paxos is headquartered in the United States, it recognizes the significant user base it has in Latin America, with over 60% of its active wallets serving customers throughout the region. Mexico, in particular, has witnessed a notable 9.3% adoption rate of cryptocurrencies, with over 12 million users. Analysts predict that by 2027, the number of crypto holders in Mexico will surpass 20 million, resulting in a penetration rate of 14.6%.

The addition of USDP to the MercadoPago payment ecosystem will offer stablecoin functionality, providing users with a more cost-effective solution for remittances and reducing the burden of extraneous fees. Mexico stands out in terms of the total number of cryptocurrency transactions, largely due to the high volume of remittances, second only to India.

Paxos has established its prominence in the fintech industry, including collaborations with major players like PayPal. Notably, Paxos became the first blockchain company to gain approval from the U.S. Securities and Exchange Commission (SEC) for settling U.S.-listed securities. However, in February 2023, Paxos received a Wells notice indicating that its Binance-based stablecoin, Binance USD (BUSD), could be classified as a security and should have been registered.

The notice sparked confusion within the cryptocurrency community, with Paxos strongly disagreeing with the SEC’s stance on BUSD. Despite this development, Paxos continues to forge ahead in the industry, with its partnership with MercadoLibre reflecting its commitment to expanding financial services and enabling greater crypto adoption.

In other news, the recently launched cryptocurrency exchange EDX has decided to switch its custody provider from Paxos to Anchorage Digital. The move is part of EDX’s strategic shift toward offering noncustodial services at its launch, according to a spokesperson from Paxos.

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