What To Know:
- a16z’s latest report highlights stablecoins processing $46T in 2024, indicating their growing role in global settlement.
- Tokenization efforts expand as asset managers explore onchain formats for equities, debt, and synthetic instruments.
- The analysis notes rising use of AI-driven agents and programmable payments standards that enable real-time, automated transactions.
Venture firm a16z released its annual assessment of the crypto and blockchain sector, offering a detailed look at stablecoins, tokenization, payments, AI agents, and the technical standards shaping the next wave of digital finance. The report points to one trend above all others: stablecoins now function as a major settlement layer for global commerce.
A16z Report Finds Rising Stablecoin Use Trends
The document highlights a striking data point. Stablecoin transaction volume hit $46 trillion in 2024, a level that surpasses many established payments networks. The figure represented more than twenty times PayPal’s volume and approached levels associated with major US banking infrastructure. Activity accelerated across both retail and institutional channels, driven by faster transfers, low fees, and the growing comfort of financial platforms integrating stablecoin rails.
The report notes that stablecoins can be transmitted in under a second at negligible cost. Yet the challenge lies in connecting digital dollars to the payment tools people already use. This gap has pushed a wave of startups to focus on on- and off-ramps. Some firms are developing cryptographic systems that allow users to swap local balances for stablecoins without revealing sensitive data. Others are integrating with regional payment networks that use QR codes or real-time settlement channels. A separate group is designing global wallet layers that support direct spending at merchants. Each approach attempts to bring stablecoins closer to everyday financial habits.
a16z suggests that once these entry points gain maturity, new financial behaviors will follow. Workers may receive cross-border wages in real time. Merchants may accept stablecoins without relying on traditional bank accounts. Consumer applications may settle balances instantly with any user in the world. The report positions stablecoins as a foundational settlement method for internet-based transactions.
Another major theme here is the shift of traditional financial assets onto blockchains. Asset managers and banks have expressed strong interest in migrating equities, commodities, and indices to tokenized formats. Today’s tokenization efforts, however, often replicate old systems rather than applying crypto-native structures. The report points to synthetic products, including perpetual futures, as examples of instruments that may offer deeper liquidity and clearer market fit.
Emerging markets are highlighted as an area where such derivatives could be particularly useful. The document also shows the growing activity around on-chain debt. Stablecoin issuers and lending platforms are experimenting with credit models that begin directly on blockchain networks. According to a16z, on-chain alternatives reduces administrative costs and expands access for borrowers and lenders. Compliance and standardized reporting remain obstacles, but the firm notes active work by developers and protocols to address these demands.
The report turns to the legacy banking sector. Many banks continue to operate systems built decades ago, using languages and databases that predate modern software standards. Upgrading these core ledgers can require years of planning and regulatory coordination. Stablecoins and tokenized deposits offer a workaround by enabling banks to introduce new services without replacing older systems. Institutions used these tools in 2025 to reach new markets, build faster settlement products, and adopt blockchain infrastructure without rewriting their entire technology stack.
Wealth management also receives attention. Tokenized assets allow personalized portfolios to be rebalanced instantly. AI-driven systems can propose strategies and adjust positions at low cost. Retail investors now have access to tokenized versions of private credit, pre-IPO shares, and alternative assets, widening the range of investable products.
Also Read: Stablecoins May Spur Currency Substitution, Weaken Central Banks
