LATAM Stablecoin Liquidity Exposed: A Fragile System at Risk

A growing dependence on a small group of stablecoin liquidity providers in Latin America may leave users vulnerable to disruption if one of these key players loses access to banking services, according to a report from Varys Capital and Verda Ventures.

The report analyzed 494 companies in the region and found that only 16 provide wholesale stablecoin-to-fiat liquidity, corporate treasury, and credit. Researchers warn that this fragility is concentrated at the thinnest layer of the system.

Verda Ventures partner Amit Chu told Cointelegraph that a disruption affecting one of these key providers could leave users holding stablecoins as they face higher costs or delays when converting them into local currency. 'The problem would be at the exits,' he said. 'Spreads would widen, cash-outs to local bank accounts would slow or pause, and funds in transit with the failed desk could be stuck.'

The report found that countries with the greatest monetary instability exhibited the fastest growth in stablecoin adoption. Stablecoins accounted for 32.1% of cross-border crypto value by June 2026, according to a September Chainalysis report.