Latin America stablecoin market faces concentration risk in liquidity supply

Latin America’s stablecoin ecosystem shows potential vulnerability because it relies on a small number of liquidity providers, according to a report by Veris Capital and Verda Ventures cited by Cointelegraph. The report said only 16 of the 494 companies surveyed focused on stablecoin-to-fiat wholesale liquidity, corporate treasury services, and credit provision. It added that if key providers lose access to banking services, local currency conversion costs could rise and withdrawals could be delayed or suspended. At the same time, the report said it did not obtain trading volume or market share data showing the actual degree of liquidity concentration.