In Brief:
- Mercado Pago partners with Paxos to launch crypto services in Brazil.
- Paxos’ blockchain technology will be integrated into MercadoPago to activate the service.
- The service will be available by the end of December, with support for Bitcoin, Ethereum, and the Pax Dollar (USDP) stablecoin.
MercadoLibre’s financial services unit, Mercado Pago, collaborated with Paxos to launch a service that allows Brazilians to buy, hold, and sell cryptocurrencies.
According to the press release, Paxos’ blockchain technology will be integrated into Mercado Pago’s app, allowing Brazilian users to access cryptocurrencies straight from the app they use to make payments and send money.
Mercado Pago was created to manage transactions from Mercado Libre, a prominent website for buying and selling items, but it quickly surpassed its original function and is now a widely accepted payment method.
The update will be available by the end of December, with support for Bitcoin, Ethereum, and the Pax Dollar (USDP) stablecoin in the Mercado Pago app initially.
Users of MercadoPago will be able to buy crypto immediately with their existing fiat amount once the option is available, eliminating the need to register a separate account with another exchange.
Users can buy crypto with their existing fiat currency balance in the app, for as little as 1 Brazilian real (about $0.18). Paxos will be in charge of the app’s cryptocurrency trading and custody.
Mercado Pago offers services in numerous Latin American nations, but it chose to launch the crypto features in Brazil first because it is the company’s largest market.
The head of strategy for Paxos, Walter Hessert, stated, “This is a transformative moment for Latin America. MercadoPago will be able to offer a seamless access to crypto and stablecoins for more than million Brazilians. This will accelerate mainstream adoption of cryptocurrency and stablecoins across the continent. We are thrilled to partner with MercadoPago to make it possible.”
