Fintech company Paxos and MercadoLibre, an online marketplace, have partnered to introduce the Pax Dollar (USDP) stablecoin to Mexico on June 28 via the MercadoPago payment service.
According to a press release, USDP will be made available to all MercadoPago customers in Mexico. While the company is headquartered in the United States, with offices in New York, London, and Singapore, more than sixty percent of its active wallets serve Latin American customers.
According to a report by Statista, Mexico presently has a cryptocurrency penetration rate of 9.3%, with more than 12 million users.
Analysts predict that by 2027, more than 20 million Mexicans will hold cryptocurrencies, bringing the total penetration to 14.6%.
Adding USDP to the MercadoPago payment ecosystem provides stablecoin access to Mexico’s service options. This feature could provide many users with respite from fees associated with remittances.
While Venezuela may lead Latin American nations in cryptocurrency adoption, Mexico ranks highest in total transactions. Only India receives more remittances than the United States.
Paxos is well-known in the fintech industry for its numerous transactions, including a partnership with PayPal and its distinction as the first blockchain company to receive SEC approval to settle U.S.-listed securities.
Paxos received a notice from Wells in February 2023 stating that its Binance-based stablecoin, Binance USD, would be classified as a security and, as such, should have been registered.
As reported in February, the cryptocurrency community was perplexed by the notice, and Paxos issued a statement strongly opposing the SEC’s classification of BUSD as security.
In other Paxos-related news, the newly-established cryptocurrency exchange EDX has decided to alter custody providers. The exchange will replace its existing collaborator, Paxos, with Anchorage Digital.
According to a spokesperson for Paxos, EDX was modified to facilitate a transition toward a noncustodial offering at launch.
