Paxos, a blockchain fintech company, has partnered with MercadoLibre, an online marketplace, to bring the Pax Dollar (USDP) stablecoin to Mexico through the MercadoPago payment service. While Paxos is headquartered in the US, its active wallets cater to clients across La tin America , with over 60% of its user base located in the region. Mexico currently has a cryptocurrency usage penetration rate of 9.3%, with more than 12 million users. Analysts predict that the number of cryptocurrency holders in Mexico will surpass 20 million by 202 7. Resulting in a total penetration rate of 14.6%.
The integration of the USDP stablecoin into the MercadoPago payments ecosystem offers users in Mexico access to stablecoin-based services. This addition is particularly beneficial for users involved in remittances, as it can help alleviate the extra fees associated with such transact ions. Mexico stands out in Latin America for its high number of cryptocurrency transactions, primarily due to the significant volume of remittances received in the country.
Paxos is well-known in the fintech industry, having secured various partnerships, including one with PayPal. It is also noteworthy for being the first blockchain company to receive approval from the US Securities and Exchange Commission (SEC) to settle US-listed securities. However, in February 2023. Paxos Received A Notification from Wells Indicating that its binance-base-based stablecoin, binance usd (BusD), Would Be Classified as a SeCurity and Required Registration. Paxos Expressed Disagreement with the Secness Classification of Bus A Security.
In other news, the newly launched cryptocurrency exchange EDX has decided to change custody providers, replacing Paxos with Anchorage Digital. The switch was made to facilitate the transition to a non-custodial offering at EDX's launch.
