Mento Protocol, a decentralized foreign exchange infrastructure that processed $18.5 billion in trading volume during 2025, has gone live on the Polygon network. The deployment introduces onchain FX markets for non-USD stablecoins, beginning with a USDm/EURm trading pair, and aims to deepen liquidity for local-currency stablecoin ecosystems.
Expanding Beyond Dollar-Denominated Stablecoins
Stablecoin activity has historically been dominated by USD-pegged assets, but that trend is shifting. Polygon has emerged as a leading network for non-USD stablecoin transfers, recording over $11.1 billion in lifetime volume across major blockchains and accounting for more than 43% of all non-USD stablecoin transfers. The addition of Mento’s FX protocol provides the infrastructure to connect these markets with predictable onchain liquidity between dollar and non-dollar stablecoins.
The EUR/USD currency pair alone represents roughly $2 trillion of the $9.5 trillion traded daily in global FX markets, making it the deepest currency pair worldwide. Mento’s launch on Polygon targets this liquidity gap by enabling reliable execution for euro-dollar trades onchain.
Infrastructure for Real-World Payments
“Mento’s mission is to make non-USD stablecoins usable across markets by providing the FX infrastructure that lets them move reliably,” said Bogdan-Radu Dumitru, CEO of Mento Labs. “Polygon is a natural frontier ecosystem for that infrastructure, given the scale of local-currency stablecoin activity already happening on the network and their investment in its growth.”
Marc Boiron, CEO of Polygon Labs, emphasized the practical implications: “Non-USD stablecoins are already moving at scale on Polygon, and FX infrastructure is what lets that activity grow into something payments businesses can actually rely on. Mento brings that layer to the ecosystem, connecting the local-currency stablecoin markets we've been building toward with the reliable execution those markets need to function.”
The deployment is supported by Capa, a Latin America-focused financial infrastructure provider, which serves as a day-one liquidity partner. Capa powers cross-border FX and payments across the region. “Non-USD stablecoin markets don't grow on infrastructure alone, they need deep liquidity,” said Jonathan Herrera, Head of Ecosystems at Capa. “We're backing the Mento Protocol on Polygon from day one because we believe onchain FX for non-dollar currencies is where real cross-border value moves next.”
Regulated Euro Stablecoin Integration
Mento is also integrating EURØP, a MiCA-regulated euro token from Schuman Financial, as a reserve asset for its EURm stablecoin. This brings a compliant euro-denominated asset into onchain FX markets. “The Euro is the world's second most-used currency, yet EUR-denominated stablecoins represent only around 1% of the stablecoin market,” noted Eduardo Morrison, Chief Business Officer at Schuman Financial. “The Mento Protocol is the necessary infrastructure to make that change.”
Mento’s Fixed Price Market Maker (FPMM) design uses trusted price feed oracles to provide reference-rate pricing, avoiding the volatility of traditional automated market maker curves. This model aims to deliver predictable execution similar to traditional FX markets, with programmable and composable liquidity for applications.
The expansion onto Polygon follows Mento’s earlier deployments on Celo and Monad, as the protocol continues to scale its cross-chain presence. For investors, the move signals growing institutional interest in non-USD stablecoin infrastructure and the potential for onchain FX to capture a share of the massive global currency market.
This article is for informational purposes only and does not constitute financial advice.
