Stablecoins Surpass Visa With $46T On-Chain Volume, a16z Reports: The Dawn of On-Chain Finance
A New Financial Paradigm Emerges
In a watershed moment for digital assets, stablecoins have processed a staggering $46 trillion in on-chain transactions over the past year, nearly tripling the annual volume of payment giant Visa. This landmark data, revealed in Andreessen Horowitz's (a16z) State of Crypto 2025 report, signals a fundamental shift in the global financial landscape. What began a decade ago as a niche tool for crypto traders has evolved into the core engine of a burgeoning on-chain economy, moving unprecedented value across borderless, open networks every day.
The report underscores that this is not a fleeting anomaly but evidence of a maturing ecosystem. The total supply of stablecoins has swelled to over $300 billion, led by the dominance of Tether (USDT) and USDC. Furthermore, the surge in usage has largely decoupled from crypto trading volumes, indicating that these digital dollars are now being deployed for substantive economic activities beyond mere speculation. With monthly adjusted transaction volume hitting $1.25 trillion in September 2025 alone, stablecoins are cementing their role as a foundational layer for global value transfer.
By the Numbers: $46 Trillion and What It Means
The core finding of a16z's report is the sheer scale of stablecoin settlement. The $46 trillion in annual on-chain volume is a figure that demands context. To put it in perspective, this surpasses Visa's payment throughput by a wide margin. Even when adjusted down to $9 trillion to account for inorganic activity—such as exchange settlements or wallet reorganizations—the volume still "handily surpasses the annual throughput of legacy giants like PayPal."
This comparison is crucial. For years, blockchain proponents have argued that public networks could one day rival traditional financial rails in scale and efficiency. The 2025 data suggests that day has arrived. The report positions this not as a speculative bubble but as the emergence of a "global settlement network." The volume indicates that stablecoins are being used for real-world transactions, remittances, business payments, and as a cornerstone of the decentralized finance (DeFi) ecosystem.
The Titans of Tokenized Cash: USDT and USDC's Market Dominance
Driving this monumental volume is a market dominated by two major players. The a16z report states that the total stablecoin supply has surpassed $300 billion, with Tether (USDT) and USDC collectively accounting for 87% of all tokens in circulation.
This duopoly highlights a market that has consolidated around liquidity and trust. Tether (USDT) has long been the most liquid stablecoin across exchanges, making it the default choice for traders and institutions. USDC, managed by the Centre consortium (co-founded by Circle and Coinbase), has carved out a significant role as a regulated dollar digital currency trusted by enterprises and DeFi protocols.
Their combined dominance means that the health and regulatory standing of these two issuers are inextricably linked to the stability of the entire on-chain economy. Their collective Treasury holdings of over $150 billion also underscore their significant role in the traditional financial system, which we will explore later.
The Settlement Layer Wars: Ethereum and Tron Process 64% of Volume
Where is all this activity happening? The battle for stablecoin settlement supremacy has clear winners. According to the report, the Ethereum and Tron blockchains remain the primary conduits, processing 64% of all adjusted stablecoin transaction volume as of September 2025.
This distribution reveals a tale of two use cases. Ethereum continues to be the bedrock for sophisticated on-chain finance. Its robust smart contract environment, deep liquidity in DeFi protocols, and institutional trust make it the preferred network for large, complex transactions and as a base layer for applications built on USDC.
Conversely, Tron has established itself as a high-throughput, low-cost network ideal for peer-to-peer transfers and remittances, particularly for USDT. Its efficiency and lower fees have made it a popular choice in regions where cost-effective cross-border payments are a priority.
The fact that nearly two-thirds of all volume flows through just two networks demonstrates the power of network effects in blockchain, but also highlights the ongoing challenge of achieving broader scalability and distribution across the ecosystem.
Beyond Trading: The Decoupling from Crypto Volatility
One of the most significant insights from the a16z report is that the surge in stablecoin usage has "largely decoupled from broader crypto trading volumes." This is a critical indicator of maturity.
In previous market cycles, stablecoin growth was almost exclusively correlated with crypto market activity. Investors would flock to USDT or USDC as a safe harbor during downturns or as a gateway asset to enter other cryptocurrencies. The decoupling suggests a new phase: stablecoins are now being used for their intended purpose as mediums of exchange and stores of value independent of crypto asset speculation.
This points to their adoption for payroll, e-commerce, international trade, and savings in economies with high inflation or capital controls. They are becoming digital dollars with utility, not just trading pairs.
The Macroeconomic Impact: Tokenizing the Dollar
The ripple effects of this stablecoin explosion are being felt in traditional macroeconomics. a16z data reveals two profound implications:
More than 1% of all U.S. dollars in existence now live as tokenized stablecoins on public blockchains. This statistic underscores a silent but massive digitization of the world's primary reserve currency. Dollars are no longer solely the domain of bank accounts and physical cash; a growing portion is natively digital, programmable, and accessible on global, permissionless networks.
Stablecoin issuers have collectively become a top-tier holder of U.S. government debt. With over $150 billion in Treasury holdings, these entities now rank as the 17th largest sovereign holder globally. This places them ahead of countries like Germany, South Korea, and Saudi Arabia. This immense purchasing power provides significant demand for U.S. debt but also intertwines the stability of the crypto economy with the health of the U.S. Treasury market.
Foundation for Growth: User Adoption and Infrastructure Leap
The stablecoin surge is described as "the most visible symptom of a broader industry transformation." The a16z authors declare that “this is the year the world came onchain,” pointing to foundational maturity across two key areas:
- User Growth: The number of monthly active crypto users now ranges between 40 and 70 million, representing an increase of approximately 10 million participants over the past year. This growing user base provides the necessary network for sustainable economic activity.
- Infrastructure Scalability: Underpinning this growth is a monumental leap in technical capability. Blockchain networks now collectively process over 3,400 transactions per second (TPS). As noted in the report, this represents a "more than 100-fold increase in throughput from just five years ago." This scaling, driven by layer-2 solutions, alternative layer-1s, and architectural improvements, has been essential to handling the $46 trillion in volume without systemic congestion.
Strategic Conclusion: The On-Chain Future Is Now
The data presented in a16z's State of Crypto 2025 report is more than just impressive metrics; it is evidence of an irreversible trend. Stablecoins are no longer a speculative experiment on the fringes of finance. They have matured into a critical piece of global financial infrastructure, processing more value than some of the world's most established payment networks.
The implications are vast. For regulators, the $150 billion in Treasury holdings by stablecoin issuers makes them significant players in sovereign debt markets, demanding a sophisticated approach to oversight. For traditional finance, the efficiency and scale of on-chain settlement present both a competitive threat and a massive opportunity for integration. For users worldwide, it represents access to a faster, cheaper, and more transparent financial system.
What to Watch Next:
- Regulatory Clarity: How will governments, particularly the U.S., formally integrate stablecoins into the existing financial regulatory framework?
- Institutional Adoption: Will major corporations begin using stablecoins for treasury management and B2B payments at scale?
- Technical Innovation: Can transaction throughput continue to scale to meet demand while maintaining decentralization and security?
- Geopolitical Shifts: How will the dominance of the U.S. dollar-backed stablecoins influence other countries' central bank digital currency (CBDC) projects?
The $46 trillion milestone is not an endpoint but a starting line. It marks the moment on-chain finance graduated from promise to practice, setting the stage for the next chapter of global economic interaction.