LATAM stablecoin liquidity may depend on few providers, investor says
Latin America’s stablecoin payment system may be vulnerable because liquidity is concentrated in a very thin layer of providers. A report from Varys Capital and Verda Ventures analyzed 494 regional companies and found only 16 whose main business is wholesale stablecoin-to-fiat liquidity, treasury, and credit. The concern is that if one major liquidity provider loses banking access, users could face wider spreads, slower or paused cash-outs, and stuck transfers. Stablecoins are growing quickly in the region, especially in countries with unstable currencies, and now represent a large share of cross-border crypto activity and peer-to-peer use. The report does not prove actual market-share concentration, but argues that many firms may rely on the same underlying desks. Proposed fixes include clearer licensing, stronger banking access, local-currency stablecoins, and more independent, well-capitalized market makers with redundant banking relationships.
