Blockchain fintech firm Paxos and online marketplace MercadoLibre have formed a partnership to bring the Pax Dollar (USDP) stablecoin to Mexico via the MercadoPago payment service on June 28.
USDP will be available to all MercadoPago clients across Mexico, according to a press release shared with Cointelegraph. While the company is headquartered in the US with offices in New York, London, and Singapore, more than 60% of its active wallets support clients across Latin America.
currently mexico have According to a Statista report, the penetration rate of cryptocurrency usage is 9.3%, with more than 12 million users. Analysts estimate that more than 20 million people in Mexico will hold cryptocurrencies by 2027, bringing the total penetration rate to 14.6%.
The introduction of USDP into the MercadoPago payments ecosystem adds stablecoin access to service options in Mexico, a feature that could provide a much-needed relief of extra fees associated with remittances for a large number of users.
While Venezuela may lead among Latin American countries in terms of cryptocurrency adoption, Mexico ranks highest in terms of total number of transactions. This is mainly due to the higher volume of remittances, which were received only in India.
Related: Why Crypto Remittance Firms Are Flocking to Mexico
Paxos is well known in the fintech space through its various deals, including its partnership with PayPal, and is notable as the first blockchain company to receive approval from the U.S. Securities and Exchange Commission (SEC) for the settlement of listed securities in the United States.
However, in February 2023, Paxos received notification from Wells that its Binance-based stablecoin, Binance USD (BUSD), would be labeled as a security and should therefore be registered.
As Cointelegraph reported in February, the cryptocurrency community was confused by the notice, with Paxos release A statement strongly disagreed with the SEC’s view of classifying BUSD as a security.
In other Paxos news, recently launched cryptocurrency exchange EDX has decided to switch custody providers. The exchange will drop current partner Paxos in favor of Anchorage Digital. A Paxos spokesperson said EDX made the change to facilitate a move to a non-custodial offering at launch.
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