Mercado Libre Debuts MELI Dollar Stablecoin for Brazil Users
Mercado Pago, the digital banking subsidiary of Mercado Libre, has introduced a new stablecoin called MELI Dollar in Brazil. This is a U.S dollar stablecoin that offers its users a stable and reliable financial instrument even in the face of economic volatility.
Mercado Pago Debuts MELI Dollar Stablecoin
Mercado Pago has recently launched MELI Dollar, a stablecoin in the Brazilian market that is directly linked to the US Dollar. This helps users have a stable currency when the economy fluctuates.
The company stated that through the Mercado Pago application, users in Brazil can purchase and sell the Meli Dollar without any transaction costs by using their balances in Brazilian reais. This stablecoin is to offer a solution in the handling of finances especially in a region that is exposed to currency volatility.
Through Ripio, the biggest cryptocurrency platform in Latin America, MercadoPago ensures the stability of the Meli Dollar. Ripio acts as the market maker for the transactions that take place through the Mercado Pago application, thus guaranteeing the smooth and secure completion of the transactions for the clients. The stablecoin is issued by Meli Uruguay SRL, a subsidiary of Mercado Libre, which means that constant value of the coin and its link to US dollar are guaranteed.
Mercado Libre’s Continued Crypto Innovations
Mercado Libre has slowly expanded its activities within the cryptocurrency market over the past few years. Some of the company’s other initiatives include launching Mercado Coin in 2022, a cryptocurrency used to make purchases and earn cash back on the Mercado Libre platform.
Additionally, Mercado Libre integrated Paxos’ blockchain technology into Mercado Pago, allowing users in Brazil to trade BTC, ETH, and the Paxos stablecoin USDP.
As per André Chaves, Senior Vice President of Mercado Pago, the company’s mission is to expand the access to the cryptosphere and promote innovation in the financial industry. This is part of Mercado Libre’s plan to offer its users more financial services in the region, making it easier for them to handle their money safely.
Stablecoin Market Growth
The introduction of the Meli Dollar is timely as the stablecoin market is continuously on the rise. Within one week from August 9 to August 20, the stablecoin market cap grew by $2.21 billion, mainly due to Tether, which increased its supply by $1.26 billion. As of now, the market capitalization of stablecoins is $168.42 billion, with Tether dominating 69.4% of the market.
Apart from the Latin America, the Tether has also unveiled plans to add a new stablecoin that will be linked to the UAE Dirham (AED). This is in line with Tether’s expansion plans to expand its operations across the world, particularly in the Middle East region.
The new stablecoin will be fully backed by liquid UAE-based reserves, which will help maintain its stability and gain the trust of users in the region.
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