REPORT | Latin America’s Stablecoin Market Faces Liquidity Concentration Risks, Report Finds

Latin America’s growing stablecoin payments market could face disruptions if a small number of wholesale liquidity providers lose access to banking services, according to a report by crypto venture firms, Varys Capital and Verda Ventures. The firms analyzed 494 companies in the region using Verda Ventures’ Stablescape database identifying just 16 primarily focused on wholesale stablecoin-to-fiat liquidity, corporate treasury, and credit. Verda Ventures partner, Amit Chu, warned that disruptions could widen conversion spreads, delay cash-outs into local currencies, and leave funds stranded with affected providers.