Bitso Subsidiary Launches Mexican Peso-Pegged Stablecoin MXNB on Arbitrum

On March 26, Bitso Business, a division of the Mexican crypto exchange Bitso, announced the launch of MXNB, a stablecoin pegged to the Mexican peso, on the Ethereum layer-2 network Arbitrum. The stablecoin will be issued and managed by Juno, a newly established Bitso subsidiary, and will be fully backed by Mexican pesos on a 1:1 basis. According to Bitso Business, MXNB aims to boost foreign investment and trade in Latin America by offering a more efficient payment method than traditional finance. Juno will operate independently, conducting regular audits and providing public attestation reports. This move comes as Chainalysis reported Mexico as a key country for crypto-based remittances, with the World Bank estimating $61 billion in remittances to Mexico annually. Stablecoin purchases on Bitso have surged by 9%, driven by high inflation and currency devaluations in Latin America, with the region experiencing a 42.5% year-on-year increase in crypto transaction value, reaching $415 billion between July 2023 and June 2024. Tether's MXNT and other smaller peso-pegged stablecoins like MMXN and MXNe are already in circulation.