Bitso’s MXNB: A New Peso-Pegged Stablecoin on Arbitrum

Bitso Business, a subsidiary of the prominent Mexican cryptocurrency exchange Bitso, is poised to revolutionize cross-border transactions within Latin America with the launch of its new stablecoin, MXNB. This Mexican peso-pegged stablecoin will operate on the Arbitrum network, a layer-2 scaling solution for Ethereum, offering a significant upgrade to traditional financial infrastructure.

Developed and managed by Bitso’s newly formed entity, Juno, MXNB boasts a robust one-to-one backing by Mexican pesos. This full fiat-backing ensures stability and minimizes volatility, a crucial feature for businesses operating in volatile economic landscapes.

Ben Reid, Bitso Business’s head of stablecoins, highlighted the potential of MXNB to streamline foreign investment and trade across Latin American markets. He emphasized the current inefficiencies inherent in traditional financial systems, stating, \”Global companies encounter considerable monetary hurdles when serving clients in new markets and processing cross-border payments, including high intermediary fees and slow transaction times.\” MXNB offers a more efficient and cost-effective solution.

To maintain transparency and build trust, Juno will operate independently from Bitso. Regular audits of reserves will be conducted, with public attestation reports readily available on the official MXNB website. This commitment to accountability is a cornerstone of MXNB’s design.

Mexico’s Remittance Revolution

Mexico’s substantial reliance on remittances presents a significant opportunity for MXNB. As reported by Chainalysis, Mexico is a key market demonstrating a strong embrace of cryptocurrency-based remittance solutions. The World Bank estimates that Mexico receives an astounding $61 billion annually in remittances, primarily from the United States, solidifying its position as the world’s second-largest recipient.

Furthermore, Chainalysis data indicates that Latin America is witnessing rapid growth in cryptocurrency transaction value, second only to sub-Saharan Africa. From July 2023 to June 2024, Latin Americans received a staggering $415 billion in crypto, representing a remarkable 42.5% year-on-year increase.

Bitso’s own research underscores the growing demand for stablecoins in Latin America, driven by concerns about inflation and currency devaluation. Their Latin America Crypto Landscape report highlights a 9% surge in stablecoin purchases on their platform, with USDC and USDT leading the way.

While USDC and USDT currently dominate, the emergence of MXNB provides a compelling native alternative, promising to facilitate faster, cheaper, and more secure transactions within Mexico and beyond.

Other peso-pegged stablecoins exist, such as Tether’s MXNT and smaller players like MMXN and MXNe, but Bitso’s established reputation and commitment to transparency position MXNB as a strong contender in this growing market.