Original Title: ‘Emerging Market Stablecoins’ Are Finding Product Market Fit
Original author: Aaron Stanley
Source of the original text:
Compiled by: Daisy, Mars Finance
"Emerging market stablecoins" are finding product-market fit.
This year, dollar-pegged stablecoins represented by USDT and USDC are in high demand, but tokens priced in local market currencies are also starting to find their product-market fit.
The cryptocurrency platform Bitso, based in Mexico, operates in several countries in Latin America and recently launched a stablecoin pegged to the Mexican Peso.
The stablecoin MXNB was announced on March 25 at the Merge Buenos Aires conference and will operate on the Arbitrum network. Arbitrum is a layer two network of Ethereum and has become an important infrastructure for stablecoins in emerging market countries.
The core concept of MXNB is to help foreign companies doing business in Mexico to more easily convert between Mexican Pesos and other currencies, thereby facilitating the provision of products and services to Mexican customers.
Similar products have recently gained attention in the Latin American region.
Bitso recently partnered with Mercado Bitcoin and Foxbit to launch a stablecoin pegged to the Brazilian Real, BRL1. In February, Brazil's Braza Bank also announced the issuance of its own Real-pegged token on the XRP Ledger.
These products have joined the existing BRL trading pairs stablecoin camp, such as BRZ issued by Transfero and BRLA issued by BRLA Digital, which have been operational in the market for many years.
Despite this, US dollar stablecoins still dominate the market, mainly due to their liquidity and convenience. For those seeking a store of value, they are a convenient way to access US dollars and are ubiquitous in the world of cryptocurrency trading.
However, soft currencies (local currencies with high volatility) do not possess these characteristics, and users typically will not hold them long-term if there are better options.
So, why has there been a renewed interest in these stablecoins that are pegged to local currencies?
The short answer is - market access. These tokens act as bridges, allowing individuals and businesses to easily enter and exit new markets, providing products and services priced in local currency.
Ben Reid, the head of stablecoins at Bitso Business, explained:
"Global enterprises face significant currency challenges when entering new markets and conducting cross-border payments, including high intermediary costs and inefficient transaction times. Today, stablecoins are seen as a fast, low-cost solution to this problem, providing an alternative to traditional fiat payment channels for expanding into overseas markets."
In this sense, local stablecoins can be seen as a bridge between global capital and local availability. They enable international businesses to receive payments in local currencies and to pay salaries, vendor fees, and customer payments through local payment systems (such as Brazil's Pix).
Lucas Giorgio, co-founder of BRLA Digital, explained that in Latin America, the churn rate can be as high as 80% when users are forced to transact in dollars instead of their local currency.
Local stablecoins like BRLA can transform this friction into a smooth experience, localizing its integration in Brazil rather than making it foreign.
For Bitso, these local currency stablecoins are a core component of its business strategy for the remainder of this year. It has established a subsidiary named Juno, which is part of the Bitso Business division, focusing on the issuance and management of digital assets such as stablecoins.
Bitso Business will also hold the first Latin American conference focused on stablecoins in Mexico City from August 27 to 28.
Why has there been renewed interest in non-USD pegged stablecoins? Ben Reid, head of stablecoins at Bitso Business, explains that the value proposition of stablecoins denominated in local currencies lies in providing market access for international participants.
In addition, when trading cryptocurrencies on international exchanges, trading pairs quoted in US dollars typically have stronger liquidity.
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New Track for Stablecoin Investment: Who is Betting on Local Currency Pegged Tokens?
Original Title: ‘Emerging Market Stablecoins’ Are Finding Product Market Fit
Original author: Aaron Stanley
Source of the original text:
Compiled by: Daisy, Mars Finance
"Emerging market stablecoins" are finding product-market fit.
This year, dollar-pegged stablecoins represented by USDT and USDC are in high demand, but tokens priced in local market currencies are also starting to find their product-market fit.
The cryptocurrency platform Bitso, based in Mexico, operates in several countries in Latin America and recently launched a stablecoin pegged to the Mexican Peso.
The stablecoin MXNB was announced on March 25 at the Merge Buenos Aires conference and will operate on the Arbitrum network. Arbitrum is a layer two network of Ethereum and has become an important infrastructure for stablecoins in emerging market countries.
The core concept of MXNB is to help foreign companies doing business in Mexico to more easily convert between Mexican Pesos and other currencies, thereby facilitating the provision of products and services to Mexican customers.
Similar products have recently gained attention in the Latin American region.
Bitso recently partnered with Mercado Bitcoin and Foxbit to launch a stablecoin pegged to the Brazilian Real, BRL1. In February, Brazil's Braza Bank also announced the issuance of its own Real-pegged token on the XRP Ledger.
These products have joined the existing BRL trading pairs stablecoin camp, such as BRZ issued by Transfero and BRLA issued by BRLA Digital, which have been operational in the market for many years.
Despite this, US dollar stablecoins still dominate the market, mainly due to their liquidity and convenience. For those seeking a store of value, they are a convenient way to access US dollars and are ubiquitous in the world of cryptocurrency trading.
However, soft currencies (local currencies with high volatility) do not possess these characteristics, and users typically will not hold them long-term if there are better options.
So, why has there been a renewed interest in these stablecoins that are pegged to local currencies?
The short answer is - market access. These tokens act as bridges, allowing individuals and businesses to easily enter and exit new markets, providing products and services priced in local currency.
Ben Reid, the head of stablecoins at Bitso Business, explained:
"Global enterprises face significant currency challenges when entering new markets and conducting cross-border payments, including high intermediary costs and inefficient transaction times. Today, stablecoins are seen as a fast, low-cost solution to this problem, providing an alternative to traditional fiat payment channels for expanding into overseas markets."
In this sense, local stablecoins can be seen as a bridge between global capital and local availability. They enable international businesses to receive payments in local currencies and to pay salaries, vendor fees, and customer payments through local payment systems (such as Brazil's Pix).
Lucas Giorgio, co-founder of BRLA Digital, explained that in Latin America, the churn rate can be as high as 80% when users are forced to transact in dollars instead of their local currency.
Local stablecoins like BRLA can transform this friction into a smooth experience, localizing its integration in Brazil rather than making it foreign.
For Bitso, these local currency stablecoins are a core component of its business strategy for the remainder of this year. It has established a subsidiary named Juno, which is part of the Bitso Business division, focusing on the issuance and management of digital assets such as stablecoins.
Bitso Business will also hold the first Latin American conference focused on stablecoins in Mexico City from August 27 to 28.
Why has there been renewed interest in non-USD pegged stablecoins? Ben Reid, head of stablecoins at Bitso Business, explains that the value proposition of stablecoins denominated in local currencies lies in providing market access for international participants.
In addition, when trading cryptocurrencies on international exchanges, trading pairs quoted in US dollars typically have stronger liquidity.