a16z Report: How Stablecoins Are Reshaping the Underlying Logic of Money

When people outside the cryptocurrency circle are still unaware, the process of rebuilding financial infrastructure has already crossed a critical threshold.

Stablecoins were once seen as a niche trading tool, mainly used for moving funds between exchanges. But according to the latest report from a16z crypto, this role has undergone a fundamental change. Stablecoins are becoming a new “financial pipeline,” on top of which a new generation of global financial products is accelerating growth.

This transformation is not only technological but also structural: it is fostering a brand-new “Banking-as-a-Service” model.

Architectural Divisions

In the past, people were accustomed to thinking that all blockchains competed on the same track. But as of 2026, infrastructure has differentiated into three distinctly different “rails” based on performance:

• General-purpose networks: such as the common public chains on the market, which remain the main hubs for crypto capital markets (trading, lending, DeFi).

• Payment-specific networks: a new category tailored for financial services. Examples include Stripe’s Tempo and Circle’s Arc. Their focus is no longer on maximizing throughput but on native stablecoin gas fees, privacy guarantees, and predictable transaction costs—crucial for fintech companies handling millions of transactions and requiring cost modeling.

• Institutional-grade networks: such as Canton, designed specifically for regulated entities. They offer programmability and privacy while maintaining compliance frameworks required by law.

This layered structure means that financial institutions no longer need to adapt through various adjustments to decentralized networks but can choose the most suitable stack based on their business scenarios.

Regulatory Catalysts

Regulation was once the biggest obstacle for institutions entering the stablecoin space, but now, regulation is amplifying growth.

With the passage of the U.S. GENIUS Act, a frantic race has begun among stablecoin issuers to obtain OCC (Office of the Comptroller of the Currency) national trust charters. This is not just about gaining a “legitimacy” of compliance but also about securing a long-term position in the payment hierarchy.

If future charter holders can directly access the Federal Reserve’s clearing system, these issuers will sit at the “main table” of the financial system, becoming new pillars of credit and capital markets.

Meanwhile, Europe’s MiCA framework, although forcing some non-compliant assets (like USDT) to be delisted, has unexpectedly spurred a boom in non-dollar stablecoins. Data shows that the monthly trading volume of non-dollar stablecoins has stabilized between $15 billion and $25 billion.

When Stablecoins Become “More Grounded”

a16z’s report reveals several counterintuitive trend data, indicating that stablecoins are becoming more localized and commercialized:

1. Explosive growth in business payments

While C2C transactions still dominate (about 790 million in 2025), C2B transactions are growing the fastest, with a 128% year-over-year increase. Monthly deposits via stablecoin card infrastructure skyrocketed from nearly zero at the end of 2024 to $300 million in early 2026.

2. Money circulation rate doubles

The “velocity” of stablecoin circulation, i.e., the ratio of monthly transfer volume to circulating supply, rose from 2.6 times at the beginning of 2024 to 6 times at the beginning of 2026. This means existing stablecoin supplies are no longer just held assets but are operating as a truly active payment network.

3. Unexpected “localization”

Although stablecoins have long been touted as cross-border tools, data shows that cross-border activity is actually decreasing, while domestic transactions have increased from about 50% at the start of 2024 to 75% at the start of 2026. For example, Brazil’s BRLA, by connecting to the country’s real-time payment system PIX, saw monthly transfer volume grow from zero to $400 million.

For individuals, stablecoins represent economic empowerment—allowing freelancers in Latin America or farmers in Africa to hold and use dollars without a U.S. bank account, combating local currency devaluation.

Credit, the “second act” of stablecoin narratives

If payments are the first act of stablecoins, then credit will be a more disruptive second act.

As trillions of dollars in stablecoin funds accumulate on-chain, these capital pools will inevitably seek productive uses. This dynamic is very similar to the rise of “private credit” over the past decade: due to regulatory pressures, traditional banks have retreated from certain lending sectors, leaving gaps filled by new capital structures.

Version 2.0 of on-chain credit will bid farewell to the early DeFi speculative nature; it is no longer about simple “collateralized Ethereum, borrowed stablecoins for speculation,” but about fostering a productive credit economy—providing liquidity for real assets, accounts receivable, and emerging market companies forgotten by traditional banking systems.

This transformation even has geopolitical significance. Through the GENIUS Act, the U.S. government is essentially betting that every wallet holding tokens is a new node in the dollar system.

This direct, intermediary-free dollar distribution channel is bringing the dollar’s penetration into corners of the world that the Bretton Woods system has never reached.

Conclusion

We are witnessing a comprehensive upgrade of the financial system—

The underlying rails have been replaced with open, programmable, and natively interoperable blockchains. Stablecoins are not only solving payment issues but also addressing idle capital, credit shortages, and high investment barriers.

The payment layer is where accounts are opened, while the credit and investment layers are where wealth truly grows. Companies that are positioning themselves within these stack layers today will define the next generation of the global dollar economy.