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Paxos and MercadoLibre partner up to bring USDP to Mexico

Paxos and MercadoLibre partner up to bring USDP to Mexico

Blockchain fintech company Paxos and online marketplace MercadoLibre have partnered to bring the Pax Dollar (USDP) stablecoin to Mexico through the MercadoPago payment service on June 28.

According to a press release shared with Cointelegraph, USDP will be available to all MercadoPago customers throughout Mexico. While the company is based in the United States — with offices in New York, London and Singapore — more than 60% of its active wallets support customers throughout Latin America.

Mexico currently has a 9.3% penetration rate for cryptocurrency use, with over 12 million users, according to a report from Statista. Analysts estimate that by 2027, more than 20 million people in Mexico will hold crypto, increasing the total penetration to 14.6%.

The introduction of USDP to the MercadoPago payment ecosystem offers stablecoin access to users in Mexico, providing relief from extraneous fees associated with remittances for many users.

While Venezuela leads in cryptocurrency adoption among Latin American countries, Mexico has the highest number of transactions. This is mainly due to remittances, with only India receiving more.

Related: Why crypto remittance companies are flocking to Mexico

Paxos is well known in fintech, with partnerships including PayPal and recognition as the first blockchain company approved by the U.S. Securities and Exchange Commission (SEC) to settle U.S.-listed securities.

In February 2023, Paxos received a Wells notice stating that its Binance-based stablecoin, Binance USD (BUSD), would be considered a security and should have been registered.

As Cointelegraph reported in February, the cryptocurrency community was confused by the notice, and Paxos strongly disagreed with the SEC’s classification of BUSD as a security.

In other Paxos news, recently launched cryptocurrency exchange EDX has decided to switch custody providers. The exchange will drop Paxos and instead use Anchorage Digital. According to a Paxos spokesperson, EDX made the change to facilitate a shift toward a noncustodial offering at launch.