Stablecoins
Neutral
Report finds LATAM stablecoin liquidity relies on 16 firms
Image: CointelegraphA Varys Capital and Verda Ventures report analyzed 494 companies in Latin America's stablecoin ecosystem. It found only 16 focus primarily on wholesale stablecoin-to-fiat liquidity, corporate treasury and credit. Verda Ventures partner Amit Chu said fragility is concentrated in the system's thinnest layer. A disruption at a key provider could slow or pause local-currency cash-outs, widen spreads or leave funds stuck. The report does not establish how concentrated liquidity is, and Stablescape does not track transaction volumes or market share.
Key points
- A Varys Capital and Verda Ventures report mapped 494 companies in Latin America's stablecoin ecosystem.
- Only 16 of those companies focus primarily on wholesale liquidity, corporate treasury and credit.
- Researchers warned fragility is concentrated in the ecosystem's thinnest layer.
- Verda Ventures partner Amit Chu said few firms hold and manage underlying liquidity risk themselves.
- Converting stablecoins into local currencies depends on scarce liquidity desks.
Why it matters
The reports highlight that local-currency cash-outs for Latin American stablecoin users may depend on a small group of wholesale liquidity providers. A failure or banking-access loss at one provider could affect conversion costs, speed or funds in transit.
What's unclear
The degree to which liquidity is concentrated is not established, the Stablescape database does not track transaction volumes or market share.
It is unknown whether exchanges and payment companies classified elsewhere in the database ultimately depend on the same underlying liquidity desks, though Verda believes some do.
Sources · 2 publishers
Crypto Briefing
Tier 2
Verda report warns LATAM stablecoin liquidity rests on 16 firms
Coverage timeline
- First reported by Cointelegraph
- Confirmed by Crypto Briefing
- CryptoVideos brief published
How this brief was made. Our system found this event in 2 independent publications, summarised two complete reports with AI and checked every number above against the source text. Sources are linked in full. Not financial advice. Report an error
