Blockchain fintech company Paxos has announced a partnership with online marketplace Mercado Libre to bring the Pax Dollar (USDP) stablecoin to users in Mexico. Transactions are facilitated by MercadoPago, Mercado Libre’s digital wallet app.
This latest move is part of Paxos’ vision to establish itself as the ‘established leader’ in digital assets across the region. More than 60% of his active wallets currently support customers in Latin America, according to data cited by the company.
Paxos Presence in Latin America
According to officials press releasePaxos says Mexico’s Mercado Pago’s adoption of USDP further builds on established partnerships between fintech companies as Mexican users will be able to access regulated stablecoins via Mercado Pago said it is.
In a statement, Arnold Reyes, head of Paxos’ Latin America division, 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 relying on the ecosystem to access key financial services. Launch of USDP within Mercado Pago represents another way Mercado Libre continues to democratize access to commercial and financial services through innovative digital asset solutions across Latin America.”
The USDP stablecoin issued by Paxos is subject to strict regulatory oversight by the New York State Department of Financial Services. USDP’s reserves are held in cash and cash equivalents, the certification of which happens to be issued by an independent third-party accounting firm, WithumSmith+Brown, PC.
In addition, the company’s website states that Witham’s audits are conducted in accordance with certification standards set by the American Institute of Certified Public Accountants (AICPA).
Promoting Stablecoin Regulation
The stablecoin market has grown significantly over the past decade. Despite many new proliferations, the ecosystem has not escaped backlash and FUD. In fact, the development of Paxos came amid growing calls for stablecoin-related regulation around the world, especially after the collapse of his TerraUSD (UST) and subsequent implosion of his FTX.
Examples of Italian Supreme Banking Authorities include: liberated A new report, titled “Markets, Infrastructure and Payment Systems,” calls on regulators to implement similar standards of financial conduct for stablecoin issuers in the industry. Stablecoins are closely tied to the DeFi market, so regulation is important, he said.
Hong Kong Monetary Authority (HKMA) the purpose It aims to roll out a regulatory framework for stablecoins by the end of 2024 and is currently seeking public input on the ecosystem.
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