Ripple has expanded its payment partnership with Bitso by introducing a new peso-backed stablecoin, MXNB, on the XRP Ledger network. This strategic move brings a Mexican peso-pegged digital asset onto Ripple’s institutional settlement infrastructure, aiming to strengthen on-chain liquidity for cross border payments in the region.
Stablecoin debut on XRP Ledger
According to the latest information, MXNB will be issued directly on the XRP Ledger and fully integrated into Ripple’s decentralized exchange-based payment architecture. The system is designed for interoperability with Ripple’s US dollar-backed stablecoin, RLUSD, empowering seamless liquidity between the US dollar and Mexican peso on blockchain rails.
Ripple and Bitso have maintained a robust collaboration across Latin America’s payment corridors for years. Their partnership previously focused on facilitating money flows denominated in the Mexican peso and Colombian peso. With this new expansion, a stablecoin layer is now incorporated to boost settlement speed and liquidity.
MXNB is backed 1:1 by the Mexican peso and was developed specifically to meet institutional settlement needs. The core objective is to allow corporate users to directly access peso-denominated liquidity via blockchain, streamlining their payment operations.
Mini glossary: A Permissioned DEX is a decentralized exchange model where only verified and approved participants can transact. Unlike open DeFi platforms, this setup is chosen for regulatory compliance and stricter counterparty controls.
Bitso, which plays a key role in this expansion, serves over 10 million users across Latin America and processes significant corporate payment flows through its Bitso Business division. As a leading crypto trading and payments platform in the region, Bitso is leveraging its strong user base to drive adoption of the new stablecoin solution.
Compliance focused liquidity on XRPL
Ripple has positioned MXNB within the Permissioned DEX framework on XRPL. This environment was specifically developed for validated counterparties and regulated financial transactions. Unlike open participation in DeFi, this model allows approved institutions to securely access on-chain liquidity in a controlled setting.
Silvio Pegado, Ripple’s Director for Latin America, highlighted that combining RLUSD with MXNB helps create regulatory compliant on-chain liquidity, especially tailored for institutional cross border payments.
Ben Reid, Stablecoin Head of Bitso Business, explained that MXNB was engineered for institutional settlement use cases. Thanks to this new integration, entities can now access peso liquidity directly on chain, meeting the needs of corporate flows.
The payment corridor between the US and Mexico remains a crucial lane due to high remittance and trade payment volumes. These flows have typically relied on correspondent banking systems, which can lead to delays, higher costs, and liquidity gaps.
Ripple’s initiative is designed to mitigate these challenges using stablecoins. With RLUSD supporting dollar transactions and MXNB covering peso operations, value can move efficiently between the two currencies via blockchain powered rails.
This development comes at a time when payment companies are increasingly exploring stablecoin solutions. Mastercard, for instance, has also broadened its stablecoin initiatives recently, including work with assets such as RLUSD.
