A new stablecoin pegged to the Mexican peso (MXN) is set to launch on the Arbitrum network, a leading Ethereum Layer-2 scaling solution. Issued and managed by Juno, a newly established subsidiary of the cryptocurrency exchange Bitso, the stablecoin aims to offer a digitally native representation of the Mexican peso for both domestic and international use cases.
The stablecoin, named MXNB, will be fully backed by Mexican pesos on a one-to-one basis. This ensures that each digital token in circulation is supported by an equivalent amount of fiat currency held in reserve. According to the official announcement from Bitso Business on March 26, this initiative is designed to enhance financial efficiency and accessibility.
Ben Reid, Head of Stablecoins at Bitso Business, highlighted that a primary application of MXNB will be to streamline foreign investment and trade within Latin American economies. By leveraging blockchain technology, the stablecoin can provide a faster and more cost-effective alternative to traditional banking systems for cross-border transactions.
“Global companies often encounter significant currency-related challenges when servicing new market clients or conducting international payments,” Reid explained. “These include high intermediary fees and slow processing times. A native peso stablecoin can mitigate these pain points.”
Juno will operate independently from Bitso and will be responsible for the management, issuance, and oversight of MXNB. The subsidiary will conduct regular audits of the peso reserves and publish these reports publicly on its website to ensure transparency and build trust among users.
Growing Importance of Crypto in Mexican Remittances
Mexico has emerged as a critical market for cryptocurrency-based remittances, according to a report published in October by blockchain analytics firm Chainalysis. The country’s substantial inflow of remittances makes it an ideal environment for digital currency solutions.
The World Bank estimated in June 2023 that Mexico receives approximately $61 billion in remittances annually, primarily from the United States. This positions Mexico as the second-largest remittance-receiving country globally.
Chainalysis research further indicates that Latin America is the second-fastest growing region in the world for cryptocurrency transaction volume, just behind Sub-Saharan Africa. Between July 2023 and June 2024, Latin American nations received a total of $415 billion in cryptocurrency, marking a year-over-year increase of about 42.5%.
Source: Chainalysis
The Rise of Stablecoins in Latin America
Bitso’s own “Latin America Cryptocurrency Landscape” report observed a 9% surge in stablecoin purchases on its platform. Users are increasingly turning to dollar-denominated stablecoins like USDC and USDT as a hedge against local currency inflation and devaluation.
“In Latin America, challenging macroeconomic conditions—including high inflation and weakening national currencies—are driving cryptocurrency adoption, particularly of stablecoins, which are perceived as reliable stores of value,” the report noted.
While USDC and USDT remain the most widely used stablecoins in the region, several Mexican peso-pegged alternatives have entered the market in recent years.
The most prominent among these is Tether’s MXNT, which launched in 2022 on the Ethereum, Polygon, and Tron blockchains. At the time, Paolo Ardoino, then-CTO and now CEO of Tether, described the token as a tool for Mexican users to store value and transition more smoothly from fiat to digital assets.
Other examples of peso-linked stablecoins include MMXN, backed by Monetary Digital, and MXNe, launched in 2024 by U.S.-based Brale on the Solana and Stellar networks.
Frequently Asked Questions
What is the MXNB stablecoin?
MXNB is a Mexican peso-pegged stablecoin launched by Bitso’s subsidiary Juno on the Arbitrum network. It is fully backed by fiat reserves and aims to facilitate efficient digital payments and remittances.
How is MXNB different from other peso stablecoins?
Unlike existing options, MXNB operates on the Arbitrum Layer-2 network, which offers lower transaction fees and faster settlement times compared to many base-layer alternatives. It is also managed by an entity independent of Bitso, with a focus on regulatory compliance and transparency.
Who can use MXNB?
The stablecoin is designed for both individual and institutional use, particularly those engaged in cross-border payments, remittances, or seeking exposure to a digitally native Mexican peso without traditional banking intermediaries.
Is MXNB available internationally?
While initially focused on the Latin American market, especially Mexico, MXNB is accessible to anyone with an internet connection and a compatible cryptocurrency wallet, given its deployment on the globally accessible Arbitrum network.
How are the reserves backing MXNB managed?
Juno, the issuing entity, holds Mexican pesos equivalent to the total supply of MXNB. These reserves are subject to regular third-party audits, and reports are made publicly available to ensure full transparency.
Why choose a stablecoin over traditional banking?
Stablecoins like MXNB can significantly reduce transaction costs and processing times for domestic and international transfers. They are especially useful in regions with underdeveloped banking infrastructure or high inflation. 👉 Explore more strategies for efficient cross-border payments