Latin American e-commerce fixture Mercado Libre has issued a dollar-pegged stablecoin in Brazil through its financial arm, Mercado Pago.
Brazil is the multinational retailer’s largest market. The new stablecoin is called the Meli Dollar and will be traded through the Mercado Pago app.
Local crypto asset platform Ripio will act as market maker and carry out exchange operations for the stablecoin.
No fees will be charged to purchase the Meli Dollar with Brazilian reals from a Mercado Pago account or for trading the stablecoin in the initial phase of its introduction.
The Meli Dollar Offers Stability In A Volatile Economy
Brazil has seen a surge in crypto trading this year, and stablecoins have led the market. The new stablecoin will be a new option for financial management, the issuer emphasized.
Mercado Pago senior vice president Andres Chaves said the Meli Dollar offers “an alternative for our customers who want to protect themselves from exchange rate variation.” Ripio co-founder and CEO Sebastian Serrano said:
“We are excited to contribute a safe and accessible solution for users of Mercado Pago in Brazil who, among other factors, want to protect their purchasing power during economic volatility.”
Mercado Libre began accepting Bitcoin (BTC), Ether (ETH), and the Pax Dollar (USDP) stablecoin as payment in Brazil through Mercado Pago in December 2021.
It incorporated BTC into its equity in 2021 with an acquisition worth $7.8 million.
Stablecoins Making Stable Progress In Latin America
Mercado Libre launched the Mercado Coin token in 2022 as part of its loyalty rewards program. It introduced USDP into Mexico for payments and trading in June 2023. It brought Circle’s USD Coin (USDC) to Chile in August of that year.
Crypto platform Reserve launched its Reserve (RSV) stablecoin in Latin America in March 2021. It was also seen as a hedge against inflation and quickly grew to handle half a million transactions a month.
In February, Crypto.com began listing BTG Dol, a US dollar-pegged stablecoin issued by BTG Pactual, a large Latin American bank.
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