Mercado Pago Launches Meli Dollar Stablecoin in Brazil

Mercado Pago Introduces New Stablecoin in Brazil

Mercado Pago, the digital banking arm of Latin America’s leading e-commerce giant, Mercado Libre (MELI), announced on Wednesday the launch of a new stablecoin in Brazil, aptly named the Meli Dollar. This innovative financial product is pegged to the U.S. dollar, providing users with a reliable digital currency option.

With the introduction of the Meli Dollar stablecoin, Mercado Pago aims to enhance the financial management experience for its users in Brazil. They will have the ability to buy and sell the stablecoin using their account balances in Brazilian reais, all without incurring any transaction fees. This initiative is designed to offer a practical and stable solution for users navigating the digital financial landscape.

Back in August 2022, Mercado Libre had previously launched its cryptocurrency, Mercado Coin, enabling users to make purchases on its platform while also benefiting from cash back rewards. This step was part of a broader strategy to integrate cryptocurrency into everyday transactions. Additionally, Mercado Libre integrated Paxos’ blockchain infrastructure with Mercado Pago, allowing customers in Brazil to buy, sell, and hold various cryptocurrencies, including Bitcoin, Ether, and the Pax dollar (USDP).

To facilitate the trading of the Meli Dollar, Mercado Pago has partnered with Ripio, a prominent Latin American crypto company that will act as the market maker for transactions. Ripio operates a trading platform and provides digital wallet services across the region, making it a suitable ally for this venture. The company has previously collaborated with Mercado Pago in developing the Mercado Coin.

This strategic move by Mercado Libre comes approximately a year after U.S.-based PayPal (PYPL) launched its own dollar-pegged stablecoin, PYUSD, which has recently approached a market capitalization of nearly $1 billion. As the landscape of digital finance continues to evolve, the introduction of the Meli Dollar positions Mercado Pago as a key player in the burgeoning cryptocurrency market in Latin America.