Latin American ecommerce giant MercadoLibre's financial technology arm Mercado Pago announced the launch of its so-called stablecoin priced in US dollars at a one-to-one value.
Stablecoin is a type of cryptocurrency that is pegged to a stable asset as a way to reduce volatility.
The South American economy is one of the largest markets for MercadoLibre. The stablecoin, called Meli Dolar, can be traded by all Mercado Pago clients in Brazil through the fintech's app, according to the company.
Mercado Pago, which operates as a digital bank and a payment services provider, said the stablecoin launch adds a new crypto product to its portfolio, as it already offers the possibility to trade crypto assets such as bitcoin and ether.
Mercado Pago added that it will not charge fees to clients to access Meli Dolar trades. Crypto asset platform Ripio will operate as an exchange and market maker for the Meli Dolar transactions with Mercado Pago.
In February 2024, Western Union and Mercado Pago have expanded their partnership, enabling customers in the US and Canada to send money directly to Mercado Pago wallet accounts in Mexico via Western Union's app, website, or retail locations. Recipients in Mexico can then withdraw cash for free, pay for services, or transfer funds. This collaboration aims to enhance convenience and accessibility for users, reinforcing Mercado Pago's goal to be a leading banking app for remittances in Mexico. Both companies share a mission to broaden access to digital and traditional financial services.
In February 2023, UK-based fintech Unlimint has expanded its payment portfolio by partnering with Mercado Pago, allowing Unlimint's global merchants to offer one of Brazil's most popular payment methods. This collaboration aims to help businesses increase market share and conversion rates in Brazil by providing secure online payments and payout capabilities via Mercado Pago's e-wallet.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now