MercadoLibre, the Latin American e-commerce platform often referred to as the “Amazon of Latin America,” is winding down its loyalty cryptocurrency Mercado Coin, which it launched in August 2022. According to a Reuters report, users must sell or spend their Mercado Coin balances through the Mercado Pago app before April 17. Any balances remaining after that deadline will be automatically converted to Brazilian reals. Brazil has served as the primary market for the token since its introduction.
Mercado Coin was designed to reward users with token-based cash back when purchasing products on the platform. Despite its discontinuation, MercadoLibre is not exiting the crypto rewards space entirely. The company continues to offer Meli Dolar (MUSD), a US-dollar stablecoin that launched in 2024, as an alternative for users seeking digital asset benefits. Subscribers to Meli+ can also receive cash back on MUSD purchases.
MercadoLibre customers currently use MUSD for everyday transactions and peer-to-peer payments within the platform. The company’s latest attestation report, dated February 28, indicates that MUSD balances are backed by $75 million worth of assets. This backing provides a degree of stability that distinguishes MUSD from the now-discontinued loyalty coin. The stablecoin’s dollar peg positions it differently from utility tokens that fluctuate in value.
The challenges facing Mercado Coin reflect a broader pattern of difficulty in launching in-house utility tokens across Latin America. Nubank, Brazil’s largest bank, introduced the Polygon-based Nucoin in late 2022 and airdropped tokens to a significant portion of its more than 100 million customers. However, Nucoin’s value collapsed by 97% by September 2024, prompting Nubank to suspend trading of the token. The bank subsequently began restructuring its loyalty program in July, removing market-based features and repositioning Nucoin as a rewards program centered on engagement and in-app benefits.
Beyond its loyalty token activities, MercadoLibre maintains a notable position in the broader cryptocurrency market through its Bitcoin (BTC) treasury holdings. According to data from BitcoinTreasuries.NET, the company holds 570.4 Bitcoin valued at approximately $38.85 million on its balance sheet. MercadoLibre made its first Bitcoin purchase in 2021, placing it among the earlier corporations to adopt the asset as a treasury holding. The company has not sold any of its Bitcoin since the initial acquisition.
The e-commerce giant’s Bitcoin investment has performed strongly over time, with the position up nearly 77% based on an average purchase price of $38,569 per coin. This treasury strategy stands in contrast to the mixed results seen with its consumer-facing crypto products. The discontinuation of Mercado Coin and the ongoing development of MUSD suggest the company is refining its approach to digital assets, prioritizing stable and utility-driven offerings over speculative loyalty tokens.
Originally reported by CoinTelegraph.
