Latin America’s largest e-commerce platform, Mercado Libre, has confirmed it will discontinue its proprietary cryptocurrency, Mercado Coin. This ends an experiment that aimed to merge loyalty rewards with blockchain-based incentives.
The company informed users that starting April 17, they will no longer be able to buy, sell, or earn cashback in the token. The decision removes the core function of Mercado Coin within the platform’s ecosystem, where it had operated primarily as a rewards mechanism tied to purchases.
The announcement came through Mercado Pago, which will manage the phase-out process. The company did not provide a detailed explanation in its communication to users.
Users face deadline to exit or convert holdings
Customers who still hold Mercado Coin have limited options before the shutdown date. They can sell their tokens through the app, spend them as purchase credits, or allow automatic conversion into local fiat currency.
Reuters reported that unused balances will convert into Brazilian reals after the deadline. This marks a full transition away from the token, with no further support planned after April 17.
Mercado Coin launched in August 2022 in Brazil and later expanded across the region. Built on the Ethereum ERC-20 standard and developed with crypto exchange Ripio, the token aimed to introduce millions of users to digital assets through cashback incentives.
Loyalty token model fails to scale
The shutdown highlights a recurring issue with branded crypto assets. Mercado Coin functioned as a closed-loop system with limited utility outside the platform. Users treated it as a discount tool rather than a store of value or tradable asset.
Its performance reflected that limitation. Despite Mercado Libre’s scale, the token did not develop sustained demand or significant trading activity. The timing also affected adoption. The token launched during a broader crypto downturn, when retail interest declined and volatility increased.
Similar challenges have appeared elsewhere in the region. Nubank introduced Nucoin as a rewards token but later reduced its functionality after its value dropped sharply. The experience reinforced the difficulty of maintaining engagement once incentives weaken.
Shift toward stablecoin infrastructure
While Mercado Coin will disappear, Mercado Libre continues to expand its crypto services. The company now focuses on more practical digital assets, particularly stablecoins.
Its dollar-pegged token, Meli Dolar (MUSD), remains active and plays a central role in the platform’s financial strategy. Unlike Mercado Coin, MUSD offers price stability and supports payments, transfers, and savings functions.
Users can hold MUSD as a hedge against local currency volatility, especially in markets such as Argentina and Brazil. The stablecoin also integrates with the company’s loyalty program, where cashback rewards now rely on a more predictable asset.
This change is part of a larger trend in how businesses deal with crypto. Internal tokens tied to promotions have struggled to compete with widely accepted assets such as stablecoins, which offer clearer financial use cases.
Crypto services remain part of the ecosystem
Mercado Libre continues to support cryptocurrency trading through Mercado Pago. Users in key markets such as Brazil, Mexico, and Chile can still buy, sell, and hold major assets, including Bitcoin and Ethereum.
The company also maintains a Bitcoin position on its balance sheet. BitcoinTreasuries data shows holdings of more than 570 BTC, valued at over $38 million. The firm first invested in Bitcoin in 2021 and has not sold its position since then.
This approach shows that the company is not exiting crypto. Instead, it is narrowing its focus to assets that align with payments, treasury management, and cross-border use.
Regional adoption shapes strategy decisions
Latin America remains one of the most active regions for crypto usage. Adoption often indicates economic conditions rather than speculative interest. High inflation and limited banking access push users toward digital alternatives that preserve value.
Mercado Libre’s pivot reflects these realities. A volatile rewards token does not address core financial needs in such markets. A dollar-backed asset offers a more direct solution.
The company processes billions of dollars in transactions each year across 18 countries. Its fintech arm is very important for people who use digital tools to pay for things and save money every day.
Corporate token trend shows signs of retreat
The decision aligns with a broader pattern across the tech sector. Several companies have reduced or abandoned proprietary digital assets introduced during the crypto boom.
Standalone tokens often struggle to build independent ecosystems. Without external demand or interoperability, they remain tied to a single platform and lose relevance once incentives decline.
Mercado Libre’s move suggests that companies now prioritize flexibility and integration over isolated token systems. Stablecoins and established cryptocurrencies provide that flexibility, as they function across platforms and financial networks.
Strategy shift reflects practical use over experimentation
Mercado Coin served as an entry point for crypto engagement but did not evolve into a lasting product. The company’s current strategy centers on tools that solve immediate problems for users.
The transition from a rewards token to stablecoin infrastructure shows a shift toward utility-driven adoption. Payments, savings, and transfers now take priority over promotional mechanisms.
Mercado Libre retains its position in the digital asset space, but its focus has changed. The infrastructure remains in place, while the experimental layer tied to loyalty incentives comes to an end.
Roman Zaika
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