On August 29th, fintech firm Circle revealed a collaboration with Mercado Libre to facilitate the integration of the USD Coin stablecoin into Mercado Pago.
Describing Mercado Libre as “the Amazon of LATAM with 200M users,” Circle’s CEO Jeremy Allaire took to X (formerly Twitter) to announce the introduction of the USD Coin (USDC) onto the Mercado Pago online payment platform of the retail giant.
USDC, a stablecoin pegged to the U.S. dollar, holds a valuation of $1.00. Its integration on the Mercado Pago platform in Chile marks a significant enhancement in utility for both cryptocurrency and the U.S. dollar within the Chilean context.
It’s frequently noted on travel and consumer awareness platforms that the U.S. dollar is not as commonly accepted for transactions in Chile as it is in numerous other Latin American nations.
According to Matias Spagui, the Senior Director of Mercado Pago:
“The U.S. dollar stands as one of the world’s most resilient currencies, serving as a straightforward instrument for safeguarding wealth in times of widespread uncertainty. Through the introduction of this stablecoin, our objective is to broaden the accessibility to cryptocurrencies and present over two million Mercado Pago users with an alternative that mirrors the value of the dollar,” stated Matias Spagui, Senior Director of Mercado Pago.
Mercado Libre had declared its intention to embrace cryptocurrencies as viable payment methods back in 2021. Since then, the company has made notable progress towards achieving this goal, exemplified by the incorporation of USDC for users in Chile, which is the most recent instance. Earlier this year, the company formed a partnership with Paxos to incorporate the Pax Dollar (USDP) stablecoin, extending the availability to users in Mexico as well.
Circle has also garnered attention recently for its announcement that Coinbase would acquire an equity stake in Circle upon the dissolution of the Centre governance body. This arrangement bestows Circle with additional responsibilities as USDC makes its debut on various blockchain platforms in the future.
Anticipating the potential influx of traditional financial institutions and major players from the tech industry into the cryptocurrency and stablecoin realms, Circle had previously disclosed its efforts to amass resources in preparation for these shifts.