Mexico | Crypto

Hyundai completed a proof-of-concept using Tether's USDT to settle a cross-border treasury transfer between its US and Mexican subsidiaries, highlighting growing enterprise interest in stablecoin-based payments. Hyundai Motor's US and Mexican units completed a pilot cross-border treasury transfer using Tether's USDT stablecoin, settling a $20,000 payment in about seven minutes on the Avalanche blockchain. According to Tether, Hyundai Motor America converted the funds into USDT, transferred the stablecoin to Hyundai Motor Mexico and converted it back into US dollars. The transfer and verification process took about seven minutes, compared with three to four hours or more for a traditional cross-border bank transfer. Tether said the pilot used Axiym's settlement infrastructure, while Hyundai Card designed the remittance structure and oversaw the regulatory, compliance, accounting and operational requirements needed to support the proof of concept. Read more

The Bank of Mexico's new stability report flags liquidity, contagion and regulatory-arbitrage risks as crypto adoption accelerates in Latin America. Mexico’s central bank warned in a new financial stability report that “stablecoins pose significant potential risks to financial stability,” citing their rapid growth, links to traditional finance and global regulatory gaps that could fuel arbitrage and magnify market stress. Stablecoins’ heavy reliance on short-term US Treasurys, market concentration with two issuers controlling 86% of the supply and past depegging episodes with stablecoins underscore how vulnerable the sector remains to stress, according to the Banxico report. Without coordinated international safeguards, mass redemptions or issuer failures could spill into broader funding markets, the central bank warned.   Read more

Binance launches Medá in Mexico, a regional crypto hub and regulated fintech driving fintech innovation across Latin America. Binance, the world’s largest centralized crypto exchange (CEX) by market capitalization, is expanding its operations in Mexico by launching a new local entity and a fresh investment commitment. Binance announced the launch of its new Mexico-based entity, Medá, in a statement shared with Cointelegraph on Monday. Medá is registered as an Electronic Payment Funds Institution (IFPE) and will operate as an independent division focused on advancing fintech services for Binance throughout Latin America. Read more