Paxos and MercadoLibre Partner to Make USDP Available in Mexico
On June 28, Paxos, a blockchain fintech company, and MercadoLibre, an online marketplace, entered into a partnership to make the Pax Dollar (USDP) stablecoin available in Mexico through the MercadoPago payment service.
In a press release distributed to Cointelegraph, it was announced that USDP will be accessible to all MercadoPago customers in Mexico. The company, headquartered in the United States, with offices in New York, London, and Singapore, provides service to more than 60% of its active wallets in Latin America.
In Mexico, the usage of cryptocurrency is currently at 9.3% penetration, with over 12 million users, according to Statista. Analysts predict that by 2027, the number of people in Mexico who hold crypto will reach 20 million, raising the penetration rate to 14.6%.
The integration of USDP into the MercadoPago payment platform in Mexico provides users with the option of using a stablecoin, which could potentially reduce the costs associated with remittances for a large number of people.
Although Venezuela is the forerunner in cryptocurrency usage amongst Latin American countries, Mexico has the most amount of transactions. This is primarily attributed to the amount of money transfers, with India being the only nation to receive more.
Crypto Remittance Companies Drawn to Mexico: Why?
Paxos is renowned in the financial technology sector due to its multiple collaborations, such as its alliance with PayPal, and its reputation as the first blockchain company to obtain the green light from the U.S. Securities and Exchange Commission (SEC) to clear U.S.-listed securities.
In February of 2023, Paxos was informed via a Wells notice that its Binance-based stablecoin, BUSD, should have been registered as a security.
In February, as reported by Cointelegraph, the cryptocurrency community was left perplexed by the announcement, and Paxos released a statement strongly contradicting the SEC’s opinion that BUSD should be considered a security.
Recently, EDX, a newly-launched cryptocurrency exchange, has decided to change its custody provider, moving away from Paxos and instead opting for Anchorage Digital. A spokesperson for Paxos stated that EDX made the shift in order to be able to offer a non-custodial service from the beginning.
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