Latin American e-commerce leader Mercado Libre is ending its Mercado Coin loyalty program, marking a significant shift in its cryptocurrency strategy. According to a Reuters report, users in Brazil must sell or spend their coin balances by April 17, 2026, or see them converted to Brazilian reals. This move comes as the company doubles down on its US-dollar stablecoin, Meli Dolar (MUSD).
Mercado Coin’s Sunset and User Transition
The company launched Mercado Coin in August 2022. It served as a rewards token for customers on its platform. Users earned tokens as cash back on purchases. Brazil was its primary market. Now, that experiment is concluding.
Also read: Solana's Critical Test: DEX Volumes Plunge to 2024 Lows as SOL Battles for $80 Support
Data from the Reuters report indicates users must act through the Mercado Pago app. Balances not addressed will be automatically converted. This suggests a managed wind-down rather than an abrupt halt. The company has not publicly detailed the reasoning behind the decision. Industry watchers note the challenges of maintaining a proprietary, non-stable utility token.
The Rise of Meli Dolar (MUSD)
The closure does not mean Mercado Libre is exiting crypto rewards. Instead, it signals a consolidation. The focus is now squarely on Meli Dolar (MUSD), a US-dollar stablecoin launched in 2024.
Also read: Bitcoin-Backed Bond Reality Check: Moody's Slaps New Hampshire with Speculative Rating
Key differences between the two offerings:
- Mercado Coin: A loyalty token with variable value, used primarily for cash back rewards.
- Meli Dolar (MUSD): A stablecoin pegged 1:1 to the US dollar, used for transactions and peer-to-peer payments.
MUSD balances are backed by tangible assets. According to Mercado Libre’s latest attestation report from February 28, 2026, the stablecoin is backed by $75 million in assets. This provides a level of stability Mercado Coin could not. Customers, particularly those in the Meli+ loyalty tier, can still receive cash back on purchases made with MUSD.
A Broader Trend of Utility Token Challenges
Mercado Libre’s experience is not unique in Latin America. Launching successful in-house utility coins has proven difficult. The most notable parallel is Nubank’s Nucoin.
Brazil’s largest digital bank launched Nucoin on the Polygon network in late 2022. It airdropped tokens to millions of customers. However, the token’s market value fell sharply. By September 2024, its value had dropped 97%. This collapse forced Nubank to suspend trading. The bank then restructured the program, removing market-based features to focus purely on engagement and app benefits.
This pattern highlights a regional challenge. Consumers may embrace crypto for payments and savings, but proprietary loyalty tokens face skepticism. The volatility and perceived complexity can hinder adoption. Stablecoins, with their peg to familiar fiat currencies, present a simpler value proposition.
Mercado Libre’s Continued Bitcoin Bet
While sunsetting its coin, Mercado Libre remains committed to Bitcoin as a corporate asset. Data from BitcoinTreasuries.NET shows the company holds 570.4 Bitcoin. As of early April 2026, this holding is worth approximately $38.85 million.
The e-commerce giant first bought Bitcoin in 2021. It was an early corporate adopter. The company has not sold any of its position. Its average purchase price was $38,569 per Bitcoin. This means the investment is currently up about 77%. This treasury strategy is separate from its consumer-facing crypto products. It indicates a long-term belief in Bitcoin’s value as a reserve asset, distinct from the utility of its own tokens.
Strategic Implications for Latin American Fintech
Mercado Libre’s pivot is significant. It shows a maturation of its crypto approach. The company is moving away from creating a novel token economy. Instead, it is utilizing stablecoin technology to enhance its core financial services.
Analysts see this as a pragmatic move. MUSD can be used for everyday transactions on its massive marketplace. It also functions within Mercado Pago, the company’s digital wallet and financial services arm. This creates a closed-loop system for dollar-denominated digital commerce in regions with volatile local currencies.
The failure of Mercado Coin and Nucoin suggests a market lesson. Latin American consumers are savvy. They will use tools that provide clear utility and stability. Speculative or complex loyalty tokens struggle to meet that need. What this means for investors is a focus on companies building usable financial infrastructure, not just token incentives.
Conclusion
Mercado Libre is ending its Mercado Coin rewards program. This decision reflects the tough reality for proprietary utility tokens in competitive markets. The company’s strategy is now clearly oriented around its stablecoin, MUSD, and its Bitcoin treasury. For Latin America’s e-commerce and fintech sector, the move underscores a shift toward stable, utility-driven crypto applications over experimental loyalty schemes. Mercado Libre’s continued Bitcoin holdings signal a separate, enduring confidence in the flagship cryptocurrency as a corporate asset.
FAQs
Q1: What is happening to Mercado Coin?
Mercado Libre is phasing out its Mercado Coin loyalty token. Users must sell or spend their balances through the Mercado Pago app by April 17, 2026. After that date, remaining balances will be converted to Brazilian reals.
Q2: Does this mean Mercado Libre is leaving cryptocurrency?
No. The company is ending only the Mercado Coin program. It continues to offer the Meli Dolar (MUSD) stablecoin for payments and rewards. Mercado Libre also maintains a significant corporate Bitcoin treasury.
Q3: What is Meli Dolar (MUSD)?
Meli Dolar is a US-dollar stablecoin launched by Mercado Libre in 2024. It is used for transactions and peer-to-peer payments on its platform. MUSD balances are backed by $75 million in assets, according to a company attestation report.
Q4: Has this happened with other Latin American loyalty coins?
Yes. Brazil’s Nubank faced similar issues with its Nucoin token. Its value fell 97% by 2024, leading the bank to suspend trading and restructure the program away from market-based features.
Q5: How much Bitcoin does Mercado Libre own?
The company holds 570.4 Bitcoin, worth approximately $38.85 million as of early April 2026. It first purchased Bitcoin in 2021 and has not sold any, making an unrealized gain of about 77% on its investment.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
Be the first to comment