Stablecoins as the New Financial Infrastructure of the Internet

The internet's financial infrastructure is undergoing a seismic shift, driven by the rise of stablecoins as a programmable, scalable, and borderless settlement layer. By 2025, stablecoins have already accounted for $46 trillion in transaction volume, rivaling traditional payment giants like Visa and PayPal. This transformation is not merely speculative-it is being fueled by real-world adoption, regulatory clarity, and infrastructure innovation. As the world moves toward a digital-first economy, stablecoins are emerging as the backbone of cross-border commerce, institutional finance, and decentralized systems.

The Cross-Border Payments Revolution

Stablecoins are redefining how value moves across borders. Traditional systems, plagued by high fees (averaging 6.49%), slow processing times, and intermediaries, are being outpaced by blockchain-based solutions. Stablecoin transactions enable peer-to-peer settlements in minutes, with fees often below 1%. This efficiency is particularly transformative for emerging markets, where remittances and B2B trade dominate. Countries like India, Pakistan, and the Philippines have seen explosive growth in stablecoin adoption, with platforms like Fireblocks reporting that nearly half of their 2025 transaction volume was stablecoin-driven.

Regulatory frameworks are also aligning with this shift. The U.S. GENIUS Act and Europe's MiCA have mandated 1:1 reserve backing for stablecoins and enforced anti-money laundering (AML) compliance. These measures have bolstered institutional confidence, enabling major players like JPMorgan Chase and Fidelity to integrate stablecoins into their offerings. The result? A hybrid financial ecosystem where stablecoins coexist with legacy systems, offering speed, transparency, and programmability.

a16z's Vision: On-Ramps, Off-Ramps, and Institutional Adoption

Andreessen Horowitz (a16z) has positioned itself at the forefront of this transition, identifying three key trends: on-ramp/off-ramp infrastructure, institutional adoption, and programmable value flows.

1. On-Ramps and Off-Ramps: The critical challenge of connecting stablecoins to traditional finance is being addressed by startups building bridges between blockchain and fiat systems. These solutions enable users to convert stablecoins into local currencies via QR codes, global wallets, and card platforms. For example, a16z-backed Shield allows global trade businesses to accept stablecoin payments and settle them as same-day USD wires. Similarly, ZAR, a Pakistani startup, is making dollar-backed stablecoins accessible through local corner stores, targeting the underbanked via a16z's support.

2. Institutional Adoption: Financial institutions are no longer on the sidelines. Visa, Fidelity, and JPMorgan have launched crypto products, while the GENIUS Act's regulatory clarity has accelerated mainstream integration. Large enterprises are also leveraging stablecoins for cost-efficient payroll, treasury management, and cross-border B2B payments .

3. Programmable Value Flows: Beyond payments, stablecoins are enabling autonomous systems. Smart contracts now automate invoicing, supply-chain finance, and escrow arrangements. Looking ahead, a16z envisions stablecoins powering AI agents and tokenized real-world assets (RWAs), creating a frictionless economy where value flows without intermediaries.

Investment Opportunities in the New Infrastructure

The infrastructure layer is where the most compelling opportunities lie. Startups are building the rails for a stablecoin-driven internet, targeting pain points in cross-border payments, liquidity, and interoperability.

• Cross-Border Payment Solutions: Companies like Zynk are enabling instant settlements between banks and blockchain networks, reducing friction in global trade via a16z's investment.
• DeFi Protocols: Stablecoins serve as liquidity backbones for decentralized finance, with protocols offering yield generation, lending, and derivatives.
• Cross-Chain Bridges: As multi-chain ecosystems expand, solutions that facilitate seamless stablecoin transfers across blockchains (e.g., Ethereum, Solana) are gaining traction.

a16z's recent investments underscore this focus. The firm led a $12.9 million round for ZAR, recognizing the potential to scale stablecoin access in emerging markets. Similarly, its support for Shield and Zynk highlights the importance of bridging digital and traditional systems.

The Road Ahead

By 2026, stablecoins are expected to solidify their role as the internet's base settlement layer. Regulatory frameworks will continue to evolve, while innovations in on-ramp/off-ramp infrastructure will democratize access. For investors, the key is to target startups that address real-world use cases-whether in remittances, enterprise finance, or programmable contracts.

The stakes are high. As stablecoins challenge SWIFT and card networks, they are not just reshaping payments-they are redefining the architecture of global finance. For those who recognize this shift early, the rewards will be substantial.