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Bitso Business, an arm of the Mexican crypto exchange Bitso, will launch a Mexican peso-pegged stablecoin on the Ethereum layer-2 network Arbitrum.<\/p>\n
The stablecoin, MXNB, will be issued and managed by Bitso\u2019s newly established subsidiary Juno and will be fully fiat-backed by Mexican pesos on a one-to-one basis, Bitso Business said in a March 26 statement.<\/p>\n
Bitso Business\u2019 head of stablecoins, Ben Reid, said a primary use case for MXNB could be to promote foreign investment and trade in Latin American economies by providing a more \u201cefficient way\u201d to do business compared to traditional finance infrastructure.<\/p>\n
\u201cGlobal companies face significant monetary challenges when it comes to serving customers in new markets and conducting cross-border payments, including high intermediary costs and inefficient transaction times,\u201d he said.<\/p>\n
Juno will operate independently from Bitso to manage the stablecoin and will conduct regular audits of its reserves, providing public attestation reports on the token\u2019s website.<\/p>\n
Crypto research firm Chainalysis reported in October<\/a> that Mexico was an \u201cimportant country to watch for its embrace of cryptocurrency-based remittances.\u201d\u00a0<\/p>\n The World Bank estimated<\/a> in June 2023 that Mexico received $61 billion in remittances per year, mostly from the US, making it the world\u2019s second-largest receiver.<\/p>\n Chainalysis found that Latin America was the second-fastest growing region globally behind sub-Saharan Africa for crypto transaction value received, and from July 2023 to June 2024, Latin Americans received $415 billion in crypto \u2014 a year-on-year increase of around 42.5%.<\/p>\n Source:<\/em> Chainanlysis<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Bitso\u2019s Latin America Crypto Landscape report found stablecoin purchases on the exchange had surged by 9%<\/a> as people turned to US dollar stablecoins such as USDC (USDC<\/a>) and Tether (USDT<\/a>) to guard against rising fiat inflation and devaluation of local currencies.<\/p>\n \u201cIn Latin America, challenging macroeconomic conditions, characterized by high inflation and currency devaluations, drove increased cryptocurrency adoption \u2014 particularly stablecoins \u2014 as a reliable store of value,\u201d the report said.<\/p>\n Related:<\/strong><\/em> Circle integrates USDC with national payment systems of Brazil, Mexico<\/strong><\/em><\/a><\/p>\n While USDC and USDT seem to be the most used stablecoins<\/a> in Latin American countries, several Mexican peso-pegged stablecoins have gone into circulation over the past few years.\u00a0<\/p>\n The most notable is Tether\u2019s MXNT, which launched on Ethereum, Polygon and Tron<\/a> in 2022. At the time, Tether\u2019s then-chief technology officer, CEO Paolo Ardoino, touted the token as a store of value for Mexican crypto users and a way to smooth the transition from fiat pesos to crypto.<\/p>\n Other smaller players in the peso-pegged stablecoin market include MMXN<\/a>, which is backed by Monetary Digital, and MXNe, which was launched by US-based issuer Brale on Solana and Stellar networks in 2024.<\/p>\n