USDP's launch into the Mexican crypto market may alleviate the customer burden of significant remittance fees.
The blockchain finance firm, Paxos, has partnered with the online marketplace giant, MercadoLibre, to bring the Pax Dollar (USDP) to Mexico.
According to the announcement shared on June 28th, the USDP introduction to the Mexican crypto market will be facilitated through MercadoLibre's payment service, MercadoPago.
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In the announcement, the companies noted that all MercadoPago customers in Mexico will have access to USDP.
Although the online marketplace is headquartered in the United States, over 60% of its active wallet users are customers in Latin America.
USDP integration into MercadoPago's offerings in Mexico introduces stablecoin access, a feature that can potentially alleviate the burden of extraneous remittance fees for a significant segment of its user base.
Notably, Paxos boasts a reputation in fintech, credited to its diverse ventures, including an alliance with PayPal. It is also recognized as the first blockchain firm to obtain approval from the US Securities and Exchange Commission (SEC) to settle US-listed securities.
However, Paxos encountered regulatory scrutiny when it received a Wells notice in February 2023, indicating that its Binance-related stablecoin, Binance USD (BUSD), could be deemed a security and should have been registered.
However, shortly after that, the New York Department of Financial Services ordered Paxos to cut ties with Binance and cease the issuance of BUSD.
The collaboration between Paxos and MercadoLibre introduces a potentially transformative element to the Mexican crypto market. This move may revolutionize remittances and bolster crypto adoption in the region.
