SAO PAULO, Aug 21 (Reuters) - Latin American e-commerce

giant MercadoLibre's ( MELI ) financial technology arm Mercado Pago

announced on Wednesday that it has started making a so-called

stablecoin priced in U.S. dollars at a one-to-one value

available to its clients in Brazil.

The South American economy is the largest market for

MercadoLibre ( MELI ).

The stablecoin, called Meli Dolar, can be traded by all

Mercado Pago clients in Brazil through the fintech's app, the

company said in a statement.

Stablecoin is a type of cryptocurrency that is pegged to a

stable asset as a way to reduce volatility.

Mercado Pago, which operates as a digital bank and a payment

services provider, said the stablecoin launch adds a new crypto

product to its portfolio, as it already offers the possibility

to trade crypto assets such as bitcoin and ether.

In 2022, MercadoLibre ( MELI ) also launched in Brazil a

cryptocurrency called MercadoCoin as part of its loyalty

program.

Mercado Pago added that it will not charge fees to clients

to access Meli Dolar trades.

The statement said crypto asset platform Ripio will operate

as an exchange and market maker for the Meli Dolar transactions

with Mercado Pago.