Bitso launches MXNB stablecoin for cross-border payments

Bitso Business, a division of Mexico’s crypto exchange Bitso, has launched MXNB, a peso-pegged stablecoin designed to improve cross-border transactions in Latin America.

The token, managed by Bitso’s subsidiary Juno, operates on Ethereum’s (CRYPTO:ETH) Arbitrum (CRYPTO:ARB) layer-2 network and is fully backed by fiat reserves on a 1:1 basis.

MXNB aims to address inefficiencies in traditional financial systems, particularly high intermediary costs and slow transaction times for global companies.

“Global companies face significant monetary challenges when it comes to serving customers in new markets and conducting cross-border payments,” Ben Reid, Bitso Business’ head of stablecoins, stated.

Juno will conduct regular audits of MXNB’s reserves and publish attestation reports publicly, emphasizing transparency.

The subsidiary also introduced the Juno Mint Platform, which offers APIs and tools for businesses to issue, redeem, and convert MXNB, along with fiat on/off-ramps via Mexico’s SPEI banking system.

The launch aligns with increasing stablecoin adoption in Latin America, where macroeconomic challenges such as inflation and currency devaluation have driven demand for USD-pegged assets like USDC (CRYPTO:USDC) and USDT (CRYPTO:USDT).

Bitso’s data shows a 9% year-over-year rise in stablecoin purchases on its platform in 2024, with USDC and USDT dominating transactions.

MXNB enters a competitive market with existing peso-pegged stablecoins, including Tether’s MXNT and alternatives like MMXN and MXNe.

While USD stablecoins remain dominant, Bitso aims to position MXNB as a localized solution for cross-border payments and remittances.

Mexico, a key remittance market, received $61 billion in remittances in 2023.

The move reflects broader crypto trends in Latin America, where transaction value surged 42.5% year-over-year to $415 billion between July 2023 and June 2024, according to Chainalysis.

Juno’s (CRYPTO:JUNO) partnership with Arbitrum highlights efforts to leverage blockchain scalability for faster, lower-cost transactions.

MXNB’s adoption will depend on businesses and institutions seeking alternatives to traditional payment systems.

As Reid emphasized, stablecoins like MXNB could “enable global companies to do business in Latin America more efficiently."