MercadoLibre Inc. announced on April 10, 2026, it will discontinue MercadoLibre Mercado Coin by June 30 amid low adoption and regulatory pressures. The move ends a three-year experiment to boost Latin America remittances via its Mercado Pago wallet.
Mercado Pago powers payments for 50 million users regionwide, according to Q1 2026 SEC filings. However, MercadoLibre Mercado Coin handled just two percent of transaction volume, according to Chainalysis data. This fell short of the 10 percent target set in 2023 launch projections.
Why MercadoLibre Ended Mercado Coin
MercadoLibre launched Mercado Coin in March 2023 on Polygon, a layer-2 blockchain scaling Ethereum for faster, cheaper transactions. The token aimed at the $100 billion USD annual remittance market in Latin America, World Bank figures show. Yet volatility wiped out 65 percent of its value from the late 2024 peak of $0.066 USD.
Brazil's Central Bank intensified oversight after 2025 crypto market surges. Daily active wallets plummeted from 250,000 in 2024 to under 80,000 by Q1 2026, Dune Analytics tracks. Vendors reported sporadic use; São Paulo merchant João Mendes relied on it for 15 percent of peer-to-peer transfers last quarter, per Mercado Pago internal data.
Mendes now favors USDT stablecoins or fiat options amid Brazil's 8.2 percent inflation rate, IBGE reports. Transaction fees had fallen to 0.5 percent with Mercado Coin from two percent standard rates, but volatility deterred sustained use. Analysts at XP Investimentos had forecasted 20 percent adoption growth in 2025, a projection missed by 85 percent.
Leadership Announces Stablecoin Pivot
CEO Marcos Galperin disclosed the shift during a Buenos Aires press conference. "We redirect resources to stablecoin partnerships for reliable growth," Galperin stated. MercadoLibre engineers now integrate Tether's USDT and Circle's USDC into Mercado Pago.
This upgrade supports QR code payments at 300,000 physical stores across the region. Beta tests slashed confirmation latency to two seconds from eight seconds using Chainlink price oracles. Prior guidance in Q4 2025 earnings called for blockchain enhancements without native tokens.
Regulatory Pressures Mount Across Borders
Argentina's CNV issued warnings on unbacked tokens last month, citing consumer protection risks. Chile's CMF and Colombia's Superfinanciera echoed similar cautions. MercadoLibre absorbed $2.5 million USD in fines during 2025, company filings confirm.
Brazil accounts for 40 percent of Latin America's 120 million crypto users, Triple-A estimates. Regional penetration stalled at 12 percent due to high-profile scams and 2022-style market crashes. Regulators now prioritize stablecoins, mirroring global trends from the EU's MiCA framework.
MELI Stock Reacts to Mercado Coin News
MELI shares fell 3.8 percent to $1,856 USD on Nasdaq by 2 p.m. ET April 10, 2026. Trading volume surged 45 percent above 30-day averages, Yahoo Finance data shows.
JPMorgan trimmed its price target to $2,000 USD from $2,150 USD. Fintech revenue reached $4.2 billion USD last quarter, comprising 28 percent of total sales and up 32 percent year-over-year from Q1 2025. However, the crypto segment grew only five percent versus 40 percent expected, dragging overall guidance.
Broader crypto markets remained cautious. Bitcoin climbed 1.6 percent to $72,219 USD, per CoinMarketCap. Mercado Coin plunged 12 percent to $0.023 USD, reflecting token-specific risks.
Broader Latin America Fintech Trends
Competitors accelerated post-announcement. Nubank's Nucripto platform added 15 percent more users overnight. Mexico's Clip processor reported 20 percent higher stablecoin transaction volume.
Fintech penetration in Latin America trails at 55 percent, versus Asia's 75 percent, Statista 2026 data indicates. Around 150 million adults remain unbanked, IMF estimates. Stablecoins address this by offering dollar-pegged stability for remittances and savings.
MercadoLibre continues blockchain use for one million daily Mercado Pago transfers. Stablecoin adoption cuts exporter hedging costs by 30 percent, ECLAC analysis finds. FintechLatam forecasts 25 percent regional volume rebound by year-end 2026.
"This pivot positions MELI for enterprise blockchain without token volatility," notes Carla Ruiz, FintechLatam director. Her survey of 5,000 merchants revealed 70 percent used MercadoLibre Mercado Coin only sporadically, preferring fiat stability.
MercadoLibre's Mercado Coin discontinuation highlights cryptocurrency risks in emerging markets. The stablecoin focus strengthens its dominance in Latin America fintech, aligning with global regulatory shifts toward safer digital assets.