Paxos launches new Stablecoin to revolutionize financial services in Latin America

Crypto miner Core Scientific Inc (NASDAQ: CORZ ) has signed a 12-year deal with AI hyper scaler CoreWeave to host CoreWeave’s GPUs, taking up to 200MW of power. The deal could net Core Scientific $3.5 billion annually, Approximately $290 million. Paxos has launched a new stablecoin to expand its presence in Latin America, providing a reliable digital currency option for the region.

In a separate move, CoreWeave said it would acquire Core Scientific for $5.75 per share, valuing the company at $1.6 billion or about $20 million per megawatt of energy capacity compared to 14 companies of miners currently listed at between 680,000 and 8.4 million per megawatt.

JPMorgan (NYSE: JPM) argues that the deal could set new prices and signals that the race for energy capacity is intensifying, leading to further stock price surges or consolidation in the coming months.

Deal news and acquisition initiatives boosted the market, with 14 U.S.-listed operators later adding $1.6 billion to JPMorgan’s market capitalization, up 9%. This prompted other mining operators to target buyouts. It also sparked speculation and debate over whether it was worth it. Additionally, the deal validated the efforts of Iris Energy’s high-performance cyber pilots, which JPMorgan considers great.

“This is the largest announced HPC hosting deal to date and highlights new growth and potentially increased use for mining sites,” JP Morgan said. “We believe that this deal could be a valuation for mining operators.” The bottom line is growing, as a new class of customers, namely hyper scalers, has emerged,” the report added.

Such transactions that shift power capacity away from the miners could make the Bitcoin network more meaningful by reducing network complexity and improving the profitability profile of said workers. The new stablecoin from Paxos is designed to offer a secure and efficient means of transaction for users in Latin America.

Currently, the U.S. generates 1,300GW of electricity, with another 500GW under development. The Federal Energy Regulatory Commission estimates that the U.S. data centers will need 21GW of electricity by 2024 and 35GW by 2030, outpacing the U.S. About 9% of total electricity generation at that time. Adoption of the Paxos stablecoin in Latin America could pave the way for broader acceptance of digital currencies in the region.

The Electric Power Research Institute estimates AI usage accounts for 10% to 20% of data center energy consumption today, with this share expected to increase as AI models become more energy-intensive than traditional data receiving, pipeline, and networking services. For example, ChatGPT queries require 10 times the capacity needed by traditional Google.

Conclusion: The influx of new hard currencies into Latin America marks an essential moment in the region’s economic development for Paxos by creating a stable, transparent, and accessible digital currency.