This article comes fromThe Block, original author: Kristin Majcher

Odaily Translator | Nian Yin Si Tang

Summary:

This article comes from

, original author: Kristin Majcher

Odaily Translator | Nian Yin Si Tang

secondary title

Summary:

- Latin America-based fintech firm Mercado Pago is partnering with Paxos so tens of millions of Brazilian users can buy, sell and hold cryptocurrencies within its app.

- The new feature is scheduled to launch this month and will support Bitcoin, Ethereum and the stablecoin Pax Dollar (USDP).

Mercado Pago Latin American fintech firm Mercado Pago has partnered with stablecoin issuer Paxos to allow its Brazilian users to buy, sell and hold cryptocurrencies directly within the app for payments and remittances.The app will initially support bitcoin, ethereum and Paxos’s dollar-pegged stablecoin Pax Dollar (USDP). Paxos will also be the custodian of the cryptocurrency.

Mercado Pago will gradually roll out the feature to Brazilian users this month, starting with employees. If these individuals wish to spend these cryptocurrencies, they will be immediately given access to them without taking any additional steps within the app. All Mercado Pago app users in Brazil are expected to have access to cryptocurrencies by the end of this month.

“As of the end of last quarter, Mercado Pago had an installed base of 28 million wallets in Brazil,” Mercado Pago CEO Osvaldo Giménez told The Block in an interview, “so 28 million users don’t have to do anything to start buying Cryptocurrencies."

Giménez continued that adding cryptocurrency functionality to existing payment apps like Mercado Pago is important for several reasons. First, he said, the ability to directly access cryptocurrencies in popular payment apps will make it easier for people to start trading since they don't have to open a separate account with another exchange. Additionally, Mercado Pago users can use their existing fiat currency balances to purchase cryptocurrencies within the app, starting with an investment of as little as BRL 1 (approximately $0.18). Giménez noted that integrating the USDP stablecoin is also important because it is difficult for Brazilians to open dollar-based bank accounts.

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Transactions are processed through the online marketplace Mercado Libre. Mercado Libre, a popular website and app for buying and selling new and used goods, operates in 18 countries. But now, many brick-and-mortar stores also use Mercado Pago to accept payments through QR codes and mobile point-of-sale systems. This payment system is also a popular way to pay bills.“As we start to see stablecoins being integrated into mainstream platforms like Mercado Libre, I think we’ll start to see new use cases for stablecoins — not just crypto transactions and DeFi, but as payments for actual goods and services, said Walter Hessert, head of strategy at Paxos.Currently, Mercado Pago users must sell cryptocurrencies before they can use those funds to buy goods with account balances on the Mercado Libre marketplace, or pay for transactions using Pix, Brazil's instant payment system.