The stablecoin market is more competitive than ever, yet it remains dominated by USD-backed assets like Tether’s USDT and Circle’s USDC. In this dynamic environment, Latin American crypto exchange Bitso is launching a Mexican peso-backed stablecoin, which could serve as a cross-border payments solution in the region.
The exchange has established a subsidiary, Juno, to issue its digital assets. Juno’s first launch will be the MXNB stablecoin. Juno will operate independently from Bitso to manage MXNB and will conduct its own reserve audits and reporting.
Ben Reid, Head of Stablecoins at Bitso Business, said that a primary objective for the stablecoin is to drive foreign investment by allowing “global companies to do business in Latin America in a more efficient way” than the conventional financial infrastructure.
Stablecoin Store of Value
The launch follows a recent Bitso study on Latin American crypto adoption, in which the company reported a 9% year-over-year increase in stablecoin purchases on its exchange in 2024.
While there are existing Mexican peso-backed stablecoins, such as Tether’s MXNT, Bitso noted that most of last year’s growth was seen in USD-backed stablecoins. USDT and USDC together accounted for 39% of total purchases on the platform in 2024.
Bitso referred to these stablecoins as a store of value for Latin American citizens grappling with difficult macroeconomic conditions, including high inflation and currency devaluation.
Solving Cross-Border Payments Struggles
Stablecoins have gained traction in regions with volatile currencies or underbanked populations because they offer a reliable alternative. They have also emerged as prime candidates for cross-border remittances, as their blockchain foundation ensures swift and secure payments.
Cross-border payments are more in-demand than ever but remain plagued by issues like slow settlement times, fraud, and exorbitant fees. While a Mexican peso stablecoin like MXNB would undoubtedly be a more reliable alternative to fiat currencies, there are still questions about how it will carve out a niche in a competitive market.
To drive adoption of MXNB, Juno plans to launch its Juno Mint Platform, which gives businesses the APIs and tools to redeem and convert MXNB. The service also facilitates fiat conversions and stablecoin exchanges.
