a16z Crypto Report: Stablecoins Evolve Into Core Financial Infrastructure Amid Regulatory And Usage Shift

Researchers from a16z crypto, the venture capital firm focused on cryptocurrency and Web3 investments, including Robert Hackett and Jeremy Zhang, have published an analysis examining the evolution of stablecoins, describing a shift from their early role as a store-of-value tool toward a position as core financial infrastructure within the digital economy. The report identifies several structural factors contributing to this transition.

One of the key drivers highlighted is regulatory development, which is described as having accelerated market expansion rather than initiating it. In the United States, the GENIUS Act introduced the first federal framework for stablecoin issuance, providing clearer legal conditions for institutional participation. Although transaction volumes had already been increasing prior to its adoption, growth reportedly accelerated afterward, with adjusted activity reaching approximately $4.5 trillion in the first quarter of 2026.

In Europe, the Markets in Crypto-Assets (MiCA) framework produced a more complex market response. Following its implementation at the end of 2024, compliance requirements led several major exchanges to delist USDT, temporarily increasing activity in non-USD stablecoins beyond $40 billion. Over time, volumes stabilised at a higher baseline, estimated between $15 billion and $25 billion per month, suggesting the emergence of a more durable market segment for non-dollar-denominated stablecoins.

Stablecoin Usage Shifts Toward Commerce And Domestic Payments As Transaction Velocity And Adoption Accelerate

The report also points to a structural change in usage patterns, particularly the growth of stablecoin-based commerce. While consumer-to-consumer transfers remain the largest category by volume, consumer-to-business transactions are identified as the fastest-growing segment, increasing by more than 100% year-on-year to approximately 284.6 million transactions in 2025. Supporting infrastructure, including stablecoin-linked card programmes, has also expanded significantly, with monthly collateral deposits rising from negligible levels in late 2024 to over $300 million by early 2026.

Another trend identified is increasing “velocity,” with each unit of stablecoin supply being used more frequently in transactions. Adjusted metrics indicate a rise from approximately 2.6x to around 6x since early 2024, suggesting that transaction demand is growing faster than issuance and that circulating supply is being used more intensively.

When isolating payment activity from trading and exchange-related flows, estimated annual payment volumes are placed in the range of $350 billion to $550 billion. Within this segment, business-to-business payments remain dominant, although consumer-facing and merchant-related flows are expanding at a faster pace.

Geographically, stablecoin activity is unevenly distributed, with nearly two-thirds of payment volume originating from Asia, particularly Singapore, Hong Kong, and Japan. North America accounts for roughly one quarter, while Europe represents around 13%. Latin America and Africa together account for a relatively small share of global activity.

The analysis further notes that stablecoin usage is increasingly tied to domestic payment systems rather than purely cross-border transfers. An example cited is Brazil, where the real-backed stablecoin BRLA has grown from minimal activity in early 2023 to approximately $400 million in monthly volume by early 2026, supported in part by integration with the PIX instant payments network. Across the broader market, the share of intra-country transactions has increased from roughly half of total payment volume in early 2024 to nearly three-quarters by early 2026.

The study concludes that stablecoins are evolving into general-purpose payment infrastructure operating on global networks but increasingly embedded in local financial systems. While the U.S. dollar continues to dominate as the primary backing currency, non-USD stablecoins are gradually expanding, and usage patterns are shifting toward everyday commercial activity rather than solely peer-to-peer transfers or cross-border settlement. The findings suggest a maturing system whose practical role in payments continues to expand.

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