USDC Stablecoin Launches on Mercado Pago via Circle Partnership

This move aims to increase the use of cryptocurrencies and the U.S. dollar in Chile, where the dollar is less commonly recognized.

USDC Stablecoin Launches on Mercado Pago via Circle Partnership
USDC Stablecoin Launches on Mercado Pago via Circle Partnership

The partnership between Circle and Mercado Libre will introduce the USDC stablecoin to Mercado Pago on August 29.

Circle CEO Jeremy Allaire published a thread on X announcing the launch of USDC on the retail giant’s Mercado Pago online payment platform, referring to Mercado Libre as “the Amazon of Latin America with 200 million users.

The USDC stablecoin is pegged to the U.S. currency. As one of the most widely adopted stablecoins, the introduction of Tether on the platform in Chile increases the utility of cryptocurrencies and the U.S. dollar in Chile.

Many travel and consumer awareness websites note that the U.S. dollar is recognized less frequently in Chile than in many other Latin American nations.

According to Mattias Spagui, senior director of Mercado Pago, Mercado Libre declared in 2021 its intention to accept cryptocurrencies as payment. He said:

“The US dollar is one of the most stable currencies in the world and a simple vehicle to ensure wealth preservation amidst general uncertainty. With the launch of this stablecoin we seek to diversify access to cryptocurrencies and offer the more than two million Mercado Pago users an alternative that matches the value of the dollar.”

Since then, it has made strides in this direction, the most recent being the integration of USDC for Chilean consumers. The company partnered with Paxos earlier this year to incorporate the USDP stablecoin for Mexican users.

Coinbase’s revelation that it would acquire an equity stake in Circle upon the dissolution of the Center governance body has also garnered recent attention for Circle.

According to reports, the agreement grants Circle additional responsibilities as USDC launches on multiple blockchain platforms in the future.

Before the realignment, Circle announced that it was amassing resources in preparation for the eventual entry of traditional finance and large tech companies into the cryptocurrency and stablecoin markets.