Stablecoin Liquidity Risks Identified in Latin America
Wholesale stablecoin liquidity providers face banking access issues that could widen conversion spreads for regional businesses.
Updated on Oct. 13, 2026 in Financial Services
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Varys Capital and Verda Ventures identified only 16 wholesale stablecoin-to-fiat liquidity providers operating across Latin America. The concentration of these services creates significant liquidity risks for businesses relying on stablecoins as cross-border transaction volume surges.
Why it matters
The limited number of providers with stable banking access increases the likelihood of volatility in conversion spreads and potential delays in cash-outs for operators. This dependence on a small group of intermediaries threatens the operational reliability of regional cross-border payment chains.
Researchers identified just 16 wholesale stablecoin liquidity providers among 494 companies surveyed in the region. Stablecoins currently account for 32.1% of cross-border crypto volume and 22.1% of domestic peer-to-peer activity, while regional remittances grew 15% in 2025.
The players
Varys Capital
An investment firm specializing in digital asset markets and research.
Verda Ventures
A research and venture capital organization focused on blockchain infrastructure and stablecoin ecosystems.
The details
Using the Verda Ventures Stablescape database, researchers found that the reliance on a narrow set of providers creates a single point of failure if banking relationships are severed. Businesses using these rails should anticipate potential conversion spread spikes and processing delays. Mitigating these risks requires identifying providers with independent, redundant banking relationships to ensure continuous access to local-currency liquidity.
Timeline
Average remittance growth across Latin America reached 15% in 2025.
Stablecoins accounted for 32.1% of cross-border crypto transaction value as of June 2026.
Market Landscape
This study underscores how the current stablecoin liquidity infrastructure is struggling to keep pace with the high-growth remittance patterns established in 2025. The findings reflect a broader trend where digital asset reliance outstrips the development of robust, institutional banking rails.
Operators reliant on crypto rails for Latin American operations should audit their liquidity providers to ensure they possess diverse, independent banking connections. Diversifying your partner list now can protect against sudden conversion spread volatility if a major liquidity hub loses banking access.
The takeaway
Liquidity concentration in the stablecoin market poses an operational threat to businesses managing cross-border flows in Latin America. Assess your current providers for banking redundancy and monitor local-currency stablecoin adoption as a potential strategy to bypass wholesale dependency.
Further reading
For more on the changing landscape of institutional digital asset use, visit our Financial Services section.
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