Blockchain fintech company Paxos has partnered 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 by Mercado Libre.
Paxos’ Mission in Latin America
Paxos aims to establish itself as a leader in digital assets in the region. With over 60% of its active wallets supporting customers in Latin America, the company sees great potential in the market.
Paxos mentioned in an official press release that the adoption of USDP by Mercado Pago in Mexico further strengthens the partnership between the two fintech firms. Mexican users will now have access to the regulated stablecoin through Mercado Pago.
Arnoldo Reyes, Head of Latin America at Paxos, emphasized the growing demand for transformative technology among digital asset consumers in the region. He stated, “Mexico is one of the most active marketplaces for digital assets, with millions of users using the ecosystem to access key financial services. The launch of USDP within Mercado Pago is another step in Mercado Libre’s mission to democratize access to commerce and financial services through innovative digital asset solutions in Latin America.”
The Paxos-issued stablecoin, USDP, is tightly regulated by the New York State Department of Financial Services. Its reserves are held in cash and cash equivalents, and its attestation reports are issued by WithumSmith+Brown, PC, an independent third-party accounting firm.
According to Paxos’ website, Withum’s examination follows the attestation standards set by the American Institute of Certified Public Accountants (AICPA).
Push for Stablecoin Regulations
The stablecoin market has experienced significant growth in the past decade. However, the industry also faces scrutiny and concerns. To address these issues, regulators worldwide are calling for stablecoin-related regulations.
One example is Italy’s top banking authority, which released a report titled “Markets, Infrastructures, and Payment Systems,” urging regulators to implement consistent financial conduct standards for stablecoin issuers. The report highlights the close ties between stablecoins and the decentralized finance (DeFi) market.
The Hong Kong Monetary Authority (HKMA) plans to roll out a regulatory framework for stablecoins by the end of 2024. The authority is currently seeking public opinions on the ecosystem.