Key Points:
- A report analyzing 494 companies in Latin America identified only 16 primarily focused on wholesale stablecoin-to-fiat liquidity, treasury and credit.
- Verda Ventures partner Amit Chu warned that concentration among underlying liquidity providers could create bottlenecks when users convert stablecoins into local currencies.
- Researchers said stronger licensing frameworks, local-currency stablecoins and multiple independent liquidity desks could improve redundancy across the regional market.
Latin America’s growing stablecoin economy may rely on a relatively small group of specialized liquidity providers, creating potential vulnerabilities at the point where digital assets are converted into local currencies.
A report from crypto venture firms Varys Capital and Verda Ventures analyzed 494 companies across the region using Verda’s Stablescape database. Researchers identified only 16 companies whose primary businesses involve wholesale stablecoin-to-fiat liquidity, corporate treasury and credit.
Verda Ventures partner Amit Chu said the concentration could create fragility within the market, particularly if several customer-facing platforms ultimately depend on the same underlying liquidity desks or exchanges.
Liquidity Concentration Could Affect Cash-Outs
The potential risk is concentrated at the conversion stage rather than necessarily in users’ ability to hold or transfer stablecoins.
Chu said a disruption involving a major liquidity provider could widen spreads and slow or temporarily halt conversions into local bank accounts. Funds being processed through a failed liquidity desk could also become temporarily inaccessible.
However, the report does not establish the actual degree of liquidity concentration across Latin America. Stablescape does not track transaction volumes or provide market-share data, according to Chu.
The database also classifies exchanges and payment companies separately, and those businesses can provide liquidity themselves. Chu said Verda nevertheless believes some of these firms may ultimately depend on the same underlying liquidity desks.
Stablecoins Gain Ground Across Latin America
The potential liquidity issue comes as stablecoins become an increasingly important part of the region’s cryptocurrency activity.
According to a September Chainalysis report cited in the source material, stablecoins accounted for 32.1% of cross-border crypto value in Latin America as of June 2026. They also represented 22.1% of domestic peer-to-peer activity and 17.6% of personal wallet balances.
The growing use of stablecoins reflects demand for faster and potentially more efficient ways to move value across fragmented banking systems and between countries.
For consumers and businesses, however, the ability to convert those digital dollars or other stablecoins into local currency remains dependent on banking relationships and available liquidity.
Licensing Could Broaden the Liquidity Base
Chu identified clearer licensing rules as one potential mechanism for reducing concentration. More predictable regulatory frameworks could make it easier for banks to establish relationships with specialized stablecoin liquidity providers.
Local-currency stablecoins could also provide another avenue for improving liquidity. According to Chu, such assets could allow more market makers to settle transactions directly onchain, while global trading firms are increasingly beginning to quote Latin American currency pairs.
A broader network of market makers and banking partners could reduce dependence on individual liquidity desks when customers move between stablecoins and local currencies.
Concentration Does Not Automatically Mean Fragility
Chu also cautioned against interpreting the small number of specialized providers as evidence of an inherently unstable market.
Traditional foreign-exchange markets can similarly have relatively few major dealers serving a much larger number of customer-facing companies. The key consideration, according to Chu, is whether sufficient redundancy and capital exist within the underlying market.
A resilient system would therefore require several independent, well-capitalized liquidity desks for major currencies, supported by separate banking relationships. Wallets and payment platforms would also benefit from the ability to route transactions between multiple liquidity providers.
Cross-Border Payments Remain a Growth Area
Despite the potential concentration risk, the report characterizes Latin America as a significant opportunity for businesses building stablecoin and cross-border payment infrastructure.
Fragmented banking systems and relatively costly international transfers create demand for services that can move money between countries more efficiently. Stablecoins can provide an additional settlement layer, but the effectiveness of that infrastructure ultimately depends on reliable access to local financial systems.
As adoption expands, the development of deeper liquidity markets and more independent providers could become increasingly important to the region’s stablecoin ecosystem.
Outlook
Latin America’s stablecoin market is expanding across cross-border payments, peer-to-peer transactions and personal financial activity, but its underlying liquidity infrastructure remains less transparent than customer-facing adoption figures.
The identification of only 16 specialized wholesale liquidity, treasury and credit providers among 494 companies does not establish a specific market concentration level, but it highlights the importance of redundancy, capital and banking access. Further development of licensing frameworks, local-currency stablecoins and independent market-making infrastructure could shape how resilient the region’s stablecoin payment system becomes.
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