Stablecoins Shift Toward Core Payment Infrastructure as a16z Signals Usage Surge

Stablecoins are rapidly shifting from a crypto trading utility into a piece of 'core financial infrastructure', according to new research from a16z crypto research—an evolution the firm says is being driven by clearer regulation, expanding payment use cases, and faster on-chain circulation.

In a recent report built around nine charts mapping how the market is changing, a16z crypto research argues the key story is not just bigger volumes, but a change in what stablecoins are used for. Once primarily a tool to move U.S. dollars between exchanges, stablecoins are increasingly functioning as general-purpose payment rails for commerce and business activity, particularly across Asia. The report also highlights a growing role for non-dollar stablecoins as regulation reshapes where and how users access them.

Regulation is one of the most visible catalysts. In the U.S., the report points to the GENIUS Act—widely interpreted as the first meaningful federal framework for stablecoin issuance—as a accelerant rather than the origin of growth. Adjusted stablecoin transfer volume was already rising before the bill advanced, but the slope steepened afterward, reaching roughly $4.5 trillion in adjusted volume in the first quarter of 2026, the researchers said.

Europe’s regulatory impact has taken a different form. After MiCA implementation, several major exchanges moved to delist Tether (USDT) in certain venues, a shift that coincided with a surge in non-dollar stablecoin trading. That activity briefly topped $40 billion before settling into a more sustained band of roughly $15 billion to $25 billion per month. The dynamic suggests regulation can do more than constrain supply—it can also force the market to develop liquidity in segments that previously struggled to form, effectively turning non-dollar stablecoins from a niche product into an observable market category.

On the demand side, a16z crypto research sees 'commerce' as the structural driver. While consumer-to-consumer (C2C) transfers still account for the majority of transactions by count, consumer-to-business activity is growing faster. The report estimates consumer-to-business transactions rose from 124.9 million in 2024 to 284.6 million in 2025—an increase of 128% year over year—signaling that stablecoins are increasingly being spent on real goods and services rather than simply held or rotated through exchanges.

Card-linked stablecoin spending is also showing measurable momentum. The report cites data tied to Rain-powered stablecoin card programs—including Ether.fi Cash, Kast, and Offramp-linked offerings such as Wallbit—where monthly collateral deposits rose from near-zero in November 2024 to more than $300 million by early 2026. While collateral deposits are not a direct measure of end-user spending, a16z crypto research frames the figure as a useful proxy for the growth of stablecoin-based consumer payments in traditional card form factors.

Another notable change is 'velocity'—how frequently stablecoins are being used relative to supply. Since early 2024, the ratio of adjusted monthly transfer volume to circulating supply climbed from about 2.6x to around 6x, according to the report. In practical terms, that implies usage is scaling faster than issuance, with each marginal stablecoin dollar being reused more often for payments, transfers, and treasury movements. a16z crypto research interprets this as a market moving from a 'stored currency' mindset toward a 'spent currency' reality.

The composition of volume is changing as well. Excluding activity tied to trading, yield strategies, and internal exchange flows, the report estimates real payment volumes at roughly $350 billion to $550 billion last year. By value, business-to-business transfers represented the largest share, while peer-to-peer payments and merchant spending also expanded quickly—reinforcing the view that stablecoins are now touching the real economy rather than remaining confined to crypto-native speculation and exchange settlement.

Geography remains highly concentrated. Around two-thirds of stablecoin payment volume comes from Asia, with Singapore, Hong Kong, and Japan highlighted as key hubs. North America accounts for roughly a quarter, while Europe contributes about 13%. Latin America and Africa combined remain below $1 billion, underscoring that despite the narrative of global accessibility, stablecoin payment adoption is still clustered in a handful of leading regions.

That said, a16z crypto research points to emerging markets as a different kind of growth vector—particularly where stablecoins integrate with local payment infrastructure. Brazil’s real-denominated stablecoin BRLA was cited as an example: monthly transfer volume grew from nearly zero in early 2023 to roughly $400 million by early 2026, with adoption supported by integration with PIX, the country’s instant payment system. The case suggests stablecoins are not only a mechanism for exporting dollar liquidity, but can also serve as a bridge between local currencies and global blockchain rails.

Perhaps counterintuitively, domestic stablecoin payments appear to be outpacing cross-border flows. The report estimates domestic transactions rose from about half of total payment volume in early 2024 to nearly three-quarters by early 2026. While stablecoins are often framed as a breakthrough for remittances and FX, a16z crypto research argues actual usage is increasingly 'localized'—global by design, but progressively embedded in everyday domestic commerce.

The report concludes that the next competitive battleground may not be raw issuance alone, but the speed at which stablecoins secure distribution and integration into payment networks. In markets where regulatory clarity, card connectivity, merchant acceptance, and local payment-system integration move in tandem, the winners could consolidate quickly—turning stablecoins from crypto’s settlement layer into a durable part of modern financial infrastructure.