TL;DR
- Polygon has integrated Mento Protocol’s decentralized foreign exchange infrastructure, introducing a USDm/EURm liquidity pool that expands onchain stablecoin payment options beyond the U.S. dollar.
- The launch includes liquidity from Capa and support from Schuman Financial’s MiCA-regulated EURØP token, strengthening regulated euro-denominated settlement and improving access to compliant digital payments.
- The integration reinforces Polygon’s leadership in non-USD stablecoin transfers, helping payment providers, fintech firms, and treasury teams access more efficient cross-border foreign exchange infrastructure.
Polygon adds Mento’s FX engine to its blockchain ecosystem, expanding support for local-currency stablecoin payments and onchain foreign exchange. The integration introduces infrastructure designed to simplify currency conversion between stablecoins while improving settlement efficiency for businesses operating across multiple regions. As stablecoin adoption extends beyond dollar-based transactions, the move strengthens Polygon’s payment-focused ecosystem with tools tailored for global financial activity.
Polygon Adds Mento’s FX Engine For Stablecoin Payments
Mento Protocol launched on Polygon with a USDm/EURm liquidity pool, marking its first foreign exchange market on the network. The pool is backed by Capa, which provides liquidity from the start, while Schuman Financial’s MiCA-regulated EURØP token serves as a reserve asset supporting EURm.
The integration addresses one of the biggest challenges in digital payments. While U.S. dollar stablecoins dominate the market, millions of users and businesses conduct everyday transactions in local currencies such as euros, pesos, rupees, and naira. By enabling onchain foreign exchange between stablecoins, Mento reduces friction for international payments without relying on traditional banking infrastructure.
According to industry estimates, global foreign exchange markets process roughly $9.5 trillion in daily trading volume, with the EUR/USD pair accounting for about $2 trillion of that activity. Bringing part of this market onchain could improve settlement efficiency while preserving blockchain transparency and around-the-clock accessibility.
Local Currency Adoption Continues To Expand
Polygon has become one of the leading blockchain networks for non-USD stablecoin activity. The network has processed more than $11 billion in lifetime transfer volume involving non-dollar stablecoins and accounts for over 43% of such transfers across major blockchain ecosystems, according to figures shared by Polygon.
Unlike traditional automated market makers, Mento uses a Fixed Price Market Maker model that references external foreign exchange price oracles. This mechanism seeks to deliver pricing that more closely reflects real-world currency markets while maintaining the composability and efficiency of decentralized finance applications.
The addition of regulated euro liquidity through EURØP also reflects the broader expansion of compliant digital assets in Europe following the implementation of the Markets in Crypto-Assets (MiCA) framework, which is encouraging greater institutional participation in blockchain-based financial services.
