The 3 biggest liquidity myths in LATAM

In Latin America, the ability to access and move liquidity is the difference between a business that scales and one that erodes margin. As digital commerce and real-time payments grow, you need speed, predictable costs, and compliance—yet traditional banking rails, with their fragmentation, fees, and cutoff windows, no longer suffice. The new stack—enterprise APIs, stablecoins, and direct connections to local rails such as SPEI* (Mexico) and Pix (Brazil)—is redefining how companies fund, convert, and settle currencies across the region.
Below we debunk three ideas that often stall FX and treasury decisions, backing each with evidence and practical ways to operate better.

Myth 1: “To operate FX in LATAM I must pre-fund local accounts in every country.”

In reality, pre-funding traps capital and exposes you to bank cutoffs. Today you can on-/off-ramp to MXN and other currencies on demand through APIs that connect local rails (SPEI*, Pix, PSE, CVU/Alias) with stablecoin liquidity pools. That reduces cash stranded in nostro/vostro accounts and frees working capital without sacrificing control. In practice, some providers let you enter and exit MXN without pre-funding, giving you direct access to liquidity when you need it with 24/7/365 settlement finality for time-sensitive payment loads.

Once on-rail, liquidity engines enable real-time conversion between MXN and stablecoins with minimal slippage, plus automated swaps (e.g., MXNB↔USDC) in seconds. That compresses “overnight float” uncertainty and improves your time-to-money.

Myth 2: “Stablecoins are speculative and unsafe for treasury.”

1) Developer and integration resources

Far from being vehicles for betting, stablecoins (with 1:1 backing and adequate transparency) serve as an operational settlement layer: minute-level settlement, access to global liquidity pools, and lower costs by reducing intermediaries and clearing delays. For PSPs, they also work as a bridge currency across thin pairs: BRL→USDC→MXN simplifies routing and lowers friction.

The hard numbers support the operating case: by bypassing correspondent banks, savings can reach 3–5% per transaction in illiquid corridors; on-chain rails are available 24/7, enabling real-time treasury and shrinking settlement from days to minutes.

Myth 3: “Compliance in LATAM makes it impossible to scale digital liquidity.”

Compliance isn’t a brake—it’s the foundation for scale. While regulatory maturity varies by country, PSPs that integrate automated KYC/AML, tax reporting, and risk governance can operate multi-country with consistent standards. In practice, the right partners bring compliance-by-design (fiat-crypto gateways, transaction screening, auditability) and tie into local rails—SPEI*, Pix, PSE, CVU/Alias—for instant payouts and full reconciliation.

Use cases that truly move the needle

Why move now?

First, the math: in thin corridors you can save 3–5% per transaction versus traditional rails; that direct cost reduction pairs with second-level finality and 24/7/365 availability, freeing capital and eliminating overnight float. Second, the infrastructure is ready: API integrations with SPEI*, Pix, PSE, and CVU/Alias let you operate locally without opening multiple accounts or pre-funding. Third, the market is consolidating: even as fintech deal counts fell in 2024 (about 140 vs. 320 in 2023), total capital remained robust (around US$2.4B), concentrating in larger tickets and in providers that combine local rails + stablecoins + compliance. Early connectors capture the cost and speed advantage.

These liquidity myths come from legacy constraints. With stablecoins, real-time payment infrastructure, and enterprise-grade APIs, PSPs can free up capital, lower costs, and compress timelines for conversion and payout—without compromising compliance. The key is to choose partners with deep liquidity, multi-country coverage, and integrated compliance so you can execute with confidence today—not “someday.”

Dive deeper into architecture, risk, and strategies with real-world examples in our eBook: “Navigating Liquidity in Transactions: How LATAM Businesses Are Powering Cross-Border FX.”

*NVIO México enables direct access to SPEI and delivers payment services fully compliant with Mexican regulation. NVIO Pagos México, S.A.P.I. de C.V., IFPE (“NVIO México”) is authorised and regulated by the Mexican National Banking and Securities Commission (CNBV). Learn more at nvio.mx/terms.