Mercado Libre Unveils MELI Dollar Stablecoin in Brazil
Latin American e-commerce giant Mercado Libre has launched a new dollar-pegged stablecoin in Brazil through its fintech arm, Mercado Pago. The MELI Dollar, introduced on August 21, 2024, aims to provide Brazilian users with a stable digital currency option amid economic volatility.
The stablecoin, priced at a one-to-one value with the US dollar, is now available to Mercado Pago’s Brazilian clients through the company’s mobile application. This move marks a significant step in Mercado Libre’s ongoing expansion into the cryptocurrency and digital finance sectors.
Andre Chaves, Senior Vice President of Mercado Pago, emphasized the company’s mission to broaden access to cryptocurrencies and drive financial innovation in the region. “Our goal is to offer our users more comprehensive financial services, enabling them to manage their money securely and efficiently,” Chaves stated.
The MELI Dollar launch comes at a time of growing interest in stablecoins, with the global market capitalization for these assets reaching $168.42 billion as of August 2024. Mercado Pago’s initiative could potentially capture a significant portion of this market in Latin America, given the company’s extensive user base of 52 million monthly active users across the region.
To ensure the stability and security of the MELI Dollar, Mercado Pago has partnered with Ripio, a leading Latin American cryptocurrency platform. Ripio will serve as the exchange and market maker for MELI Dollar transactions, facilitating smooth operations within the Mercado Pago ecosystem.
Notably, Mercado Pago is currently waiving transaction fees for MELI Dollar trades, potentially accelerating adoption among its user base. This strategy contrasts with the company’s approach to other cryptocurrencies, which typically incur a 1.5% transaction fee.
The MELI Dollar is issued by Meli Uruguay SRL, a subsidiary of Mercado Libre, underscoring the company’s commitment to maintaining the stablecoin’s value and its peg to the US dollar. This structure may provide additional confidence to users concerned about the stability of digital currencies.
This latest development follows Mercado Libre’s previous forays into the cryptocurrency space, including the 2022 launch of Mercado Coin, a cryptocurrency used for purchases and cashback on the Mercado Libre platform. The company has also integrated other cryptocurrencies like Bitcoin and Ethereum into its services, reflecting a broader strategy to embrace digital assets.
