I feel like I'm finally starting to see the true value of stablecoins. Reading the a16z report, I realize that the nature of the market has drastically changed over the past few years.

Stablecoins, which used to be just a simple trading tool, are now something different. As regulatory frameworks have been established, institutional investors are starting to seriously enter the space. Every time countries clarify regulations, like the GENIUS Act or MiCA, the market accelerates. Looking at actual data, the trading volume in the first quarter of this year was $4.5 trillion. Compared to before regulation, the growth rate is completely different.

What’s interesting is how dramatically the usage has changed. Commercial payments are exploding. C2B transactions have increased by 128% year-over-year, and collateral deposits for stablecoin payment cards exceed $300 million per month. This isn’t just speculation; it’s actually starting to function as a payment infrastructure.

And the most intriguing point that a16z points out is that the velocity of stablecoin circulation has doubled. From early 2024, it increased from 2.6 times to 6 times. What does this mean? It indicates that existing funds are being used more frequently. It’s a hallmark of a mature payment network.

Geographically, Asia is overwhelmingly dominant. About two-thirds of transactions are from Asia. Singapore, Hong Kong, and Japan are the centers. North America accounts for about a quarter, and Europe 13%. Latin America and Africa are still small.

Another notable change is the progress of localization. Non-dollar stablecoins are emerging. For example, Brazil’s BRLA has reached $400 million in monthly trading volume after integrating PIX. The proportion of domestic payments has increased from 50% to 70%. In other words, stablecoins are no longer just cross-border remittance tools but are becoming regionally rooted everyday payment infrastructures.

This is a completely opposite development from previous expectations. The industry is still in its early stages, but the final form of stablecoins is gradually becoming clearer. An evolution toward a universal public payment infrastructure. The direction indicated by a16z’s data seems quite confident.