LATAM stablecoin liquidity may depend on few providers, investor says
A report from Varys Capital and Verda Ventures, using Verda’s Stablescape database, finds Latin America’s stablecoin payment ecosystem relies on a small set of firms that provide wholesale stablecoin-to-fiat liquidity, corporate treasury and credit. Of 494 regional crypto companies analyzed, researchers identified just 16 whose main business is supplying that liquidity, raising concerns that cash-out capacity could be vulnerable if major providers lose banking access.
Why It Matters
If liquidity provision is concentrated among a few desks, users and businesses could face wider spreads, slower or paused cash-outs, and trapped funds when converting stablecoins to local currency — a material operational risk for payment flows in a region that increasingly uses stablecoins for domestic and cross-border activity.
Key Facts
- Companies analyzed: 494 Latin America crypto companies in Verda’s Stablescape database
- Primary liquidity providers: 16 firms focused mainly on wholesale stablecoin-to-fiat liquidity, treasury and credit
- Source organizations: Varys Capital and Verda Ventures (report drawing on Verda’s Stablescape)
- Stablecoin share in LATAM crypto activity (June 2026): 32.1% of cross-border crypto value; 22.1% of domestic P2P activity; 17.6% of personal wallet balances (Chainalysis, Sept report)
- Report limitation noted: Stablescape does not track transaction volumes or market share, so concentration of liquidity by volume is not established
Researchers from Varys Capital and Verda Ventures concluded that Latin America’s stablecoin payments infrastructure may depend on a narrow set of specialized liquidity providers. Using Verda’s Stablescape database to map 494 regional crypto firms, the teams found just 16 companies that list wholesale stablecoin-to-fiat liquidity, corporate treasury and credit as their primary activity, and warned that “fragility in the system is concentrated in its thinnest layer.” Verda partner Amit Chu cautioned that public data do not reveal whether those liquidity sellers warehouse currency risk themselves or route it through a handful of desks and exchanges; Verda’s view is that many pass risk to common counterparties, which would amplify systemic fragility. He said a disruption affecting a key provider could widen spreads, delay or pause cash-outs to local bank accounts, and leave funds stuck with a failed desk. The report places this potential weakness in the context of growing stablecoin use in Latin America. A Chainalysis report cited in the research showed stablecoins accounted for 32.1% of cross-border crypto value in the region by June 2026, and also made up significant shares of domestic peer-to-peer activity and personal wallet holdings. The Varys-Verda analysis notes that countries with greater monetary instability have seen the fastest stablecoin adoption, reinforcing demand for reliable liquidity pathways. Chu identified clearer licensing regimes and local-currency stablecoins as policy and product levers that could reduce concentration by making it easier for banks to serve liquidity providers and enabling more market makers to settle onchain. He also emphasized that a small number of specialized dealers is not inherently problematic in mature FX markets, where redundancy, capitalization and separate banking relationships among independent desks are the key safeguards. The report frames Latin America overall as a growth opportunity for firms addressing costly and fragmented cross-border banking and payments.
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Original source: Cointelegraph