Paxos Provides USDP Stablecoin Access to Mexico with Mercado Libre Partnership

Blockchain fintech company Paxos has announced a partnership with online marketplace Mercado Libre to bring the Pax Dollar (USDP) stablecoin to users in Mexico. The transactions will be facilitated by MercadoPago, a digital wallet app from Mercado Libre.

The latest move is part of Paxos’ vision to position itself as the “established leader” in digital assets across the region. Figures cited by the company state that more than 60% of its active wallets currently support customers in Latin America.

Paxos presence in Latin America

according to official Press releasePaxos said that the adoption of USDP by Mercado Pago in Mexico builds on an established partnership between the fintech firms, as Mexican users will now be able to access the regulated stablecoin through Mercado Pago.

In a statement, Paxos head of Latin America, Arnoldo Reyes, highlighted the growing demand for “transformative technology” by digital asset consumers in the region. He added,

“Mexico is one of the most active markets for digital assets, with millions of users using the ecosystem to gain access to key financial services. The launch of USDP within Mercado Pago represents another way that Mercado Libre continues to democratize access to commerce and financial services through innovative digital asset solutions throughout Latin America.

USDP, the stablecoin issued by Paxos, is subject to strict regulatory oversight by the New York State Department of Financial Services. USDP reserves are held in cash and cash equivalents, while its attestation report is issued by Withesmith+Brown, PC, an independent third-party accounting firm.

In addition, the company’s website states that Witham’s exams are conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA).

Strive for Stablecoin Regulations

The stablecoin market has grown significantly over the past decade. Despite the huge new spread, the ecosystem hasn’t managed to stay away from backlash and FUD. In fact, Paxos’ development comes amid growing demand for regulations related to stablecoins around the world, especially after the collapse of TeraUSD (UST) and the subsequent FTX explosion.

Italy’s top banking authority, for one, Free A new report titled “Markets, Infrastructure and Payment Systems” calls on regulators to enforce uniform financial conduct standards for stablecoin issuers across the industry. It added that regulating stablecoins is important because of their close ties to the DeFi market.

Hong Kong Monetary Authority (HKMA) Target Creating a regulatory framework for stable coins by the end of 2024 and is currently in the process of soliciting public views regarding the ecosystem.