MercadoLibre’s financial technology subsidiary, Mercado Pago, has launched its own U.S. dollar-backed stablecoin in Brazil, marking a significant expansion of its cryptocurrency offerings in the country. The stablecoin, named Meli Dolar, is pegged to the U.S. dollar at a one-to-one ratio and is now available for trading by all Mercado Pago clients via the fintech’s app, according to a statement released by the company on Wednesday.
Brazil, the largest market for MercadoLibre, is set to become a key hub for the new stablecoin, which aims to provide users with a less volatile cryptocurrency option. Stablecoins, a type of cryptocurrency designed to maintain a stable value by being tied to a reserve asset, have become increasingly popular as a way to mitigate the extreme price fluctuations that typically characterise digital currencies.
Mercado Pago, which operates both as a digital bank and a payment service provider, has been expanding its cryptocurrency portfolio. In addition to Meli Dolar, the platform already supports the trading of major cryptocurrencies such as Bitcoin and Ethereum. This latest offering follows the 2022 launch of MercadoCoin, a cryptocurrency integrated into MercadoLibre’s loyalty programme in Brazil.
To facilitate transactions involving Meli Dolar, Mercado Pago has partnered with crypto asset platform Ripio, which will serve as an exchange and market maker. Notably, the fintech firm has announced that clients will not incur any fees for accessing Meli Dolar trades, potentially making the stablecoin an attractive option for those looking to diversify their digital currency holdings.
The introduction of Meli Dolar underscores MercadoLibre’s ongoing commitment to integrating cutting-edge financial technology into its ecosystem, as it continues to expand its influence in the burgeoning Latin American digital economy.
