Blockchain data analytics firm Verda said in a report that stablecoin liquidity in Latin America is heavily concentrated in the hands of a small group of institutions. According to the report, the region’s stablecoin liquidity depends on just 16 companies. Verda said that level of concentration could create systemic risk for the regional financial ecosystem and leave it exposed to potential instability. The report also said excessive concentration makes the broader system especially vulnerable if any of those key participants faces a risk event. The item was cited by Crypto Briefing and republished by Techub.
Techub News reported that blockchain data analytics firm Verda said in a report that stablecoin liquidity in Latin America is highly concentrated among a small number of institutions.
The report said the region’s stablecoin liquidity depends on only 16 companies. Verda said that concentration could pose systemic risk to the regional financial ecosystem and create potential instability.
The report also said that excessive liquidity concentration leaves the system particularly vulnerable when risk events hit a small number of key participants.
The item was cited by Crypto Briefing.
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