A new report from Varys Capital and Verda Ventures highlights potential risks in the Latin American stablecoin market. Researchers identified 494 companies in the region, but found that only 16 firms focus on wholesale liquidity, corporate treasury, and credit services.
Verda Ventures partner Amit Chu suggests that the ecosystem may rely on a limited number of underlying liquidity providers. This concentration could disrupt the ability of users to convert stablecoins into local currencies if a major provider loses banking access.
According to a September Chainalysis report, stablecoins accounted for 32.1% of cross-border crypto value in Latin America by June 2026. They also represented 22.1% of domestic peer-to-peer activity and 17.6% of personal wallet balances in the region.
Chu noted that while the report does not track specific transaction volumes or market shares, the industry faces potential fragility. He emphasized that clearer licensing and the development of local-currency stablecoins could help reduce market concentration.
The report identifies Latin America as a significant growth area for cross-border payment services. It argues that fragmented banking systems and high transfer costs continue to drive demand for stablecoin solutions among individuals and businesses.
