A Latin American stablecoin ecosystem report finds that only 16 of 494 companies focus primarily on wholesale liquidity, treasury and credit, raising concerns about concentration risk in the region's stablecoin market infrastructure.
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A research report on Latin America's stablecoin ecosystem has identified a sharp concentration in the market's wholesale layer. Of 494 companies examined, only 16 focus primarily on wholesale liquidity, treasury and credit. That means the vast majority of firms in the ecosystem are engaged in other activities, such as retail wallets, payments, exchanges or technology services. The report's authors flag this imbalance as a source of structural fragility, because the functions performed by those 16 firms are critical to how stablecoins move at scale.
The report describes 'fragility in the system concentrated in its thinnest layer,' referring to the small number of providers that handle large-scale liquidity. In stablecoin markets, wholesale liquidity providers are typically the entities that make it possible to mint or redeem tokens in size, settle large transfers and manage treasury operations. When that layer is thin, a shock — such as a sudden surge in redemptions or a drop in market-making activity — can be harder to absorb. The finding therefore points to a vulnerability that may not be visible in the number of wallets or retail users across the region. This matters because the health of the wholesale layer affects the entire ecosystem's ability to function smoothly.
Latin America has become a significant market for stablecoin usage, driven by remittances, cross-border business payments and demand for dollar-denominated savings in countries with high inflation or capital controls. That growth increases the volume of transactions that depend on wholesale liquidity providers. If the infrastructure layer remains concentrated, rising demand could place more pressure on the same small group of firms. The report's warning comes as stablecoins are increasingly integrated into everyday financial activity in the region, from remittance corridors to merchant payments. The contrast between expanding use and a narrow liquidity base is central to the report's concern.
Concentration in critical financial infrastructure is not unique to stablecoins. Traditional payment systems, clearing houses and government bond markets also rely on a limited number of large participants, and regulators have long monitored such dependencies. In the stablecoin context, however, the absence of a central bank backstop or uniform supervision across Latin American jurisdictions can make coordination more difficult. The report's finding suggests that the ecosystem's resilience may depend on whether those 16 wholesale-focused companies remain operational and adequately capitalized. It also raises questions about the barriers that may prevent more firms from entering the wholesale liquidity, treasury and credit segment.
It found that of 494 companies in the LATAM stablecoin ecosystem, only 16 focus primarily on wholesale liquidity, treasury and credit. The researchers warned that the system's fragility is concentrated in this thin layer.
Wholesale liquidity providers enable large-scale minting and redemption, facilitate big transfers and manage treasury operations. Without enough of them, the stablecoin market can struggle to handle sudden changes in demand or volume.
Even if users only interact with wallets or apps, those services depend on the wholesale layer to settle transactions and maintain liquidity. Concentration can lead to slower processing or wider costs during periods of stress.
LATAM has seen strong stablecoin adoption for remittances and as a hedge against currency instability, which increases transaction volumes. That makes the thin wholesale layer more significant because demand is growing.
The 16-of-494 Finding
Why the 'Thinnest Layer' Matters
LATAM's Growing Stablecoin Use Raises the Stakes
Concentration Risk in Context
What the Finding Means for the Ecosystem
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The report does not predict a specific outcome, but it highlights a structural feature that could shape how stablecoins develop in Latin America. If the wholesale layer stays narrow, efforts to expand stablecoin payments or savings products may encounter limits in settlement capacity and liquidity depth. Conversely, a broader set of providers could distribute risk and support larger transaction volumes, though building such capacity takes time, capital and regulatory clarity. The finding is likely to inform discussions among investors, founders and policymakers about where the ecosystem's next layer of growth should come from. As stablecoin adoption continues, the composition of the wholesale layer will remain a key indicator of the market's underlying strength.
More companies entering wholesale liquidity, treasury and credit could distribute the load. However, that requires capital, expertise and regulatory conditions that support such businesses.
No, the report identifies a structural vulnerability rather than predicting a collapse. It emphasizes that the concentration of critical functions in a few providers is a risk factor to monitor.
