a16z: Key Events in Traditional Finance Embracing Stablecoins Recently
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a16z: Key Events in Traditional Finance Embracing Stablecoins Recently
The common core behind these events: meeting user needs.
Navigating Web3 tides with focused insightsAuthor: a16zcrypto
Translation: TechFlow
We've mentioned many times that stablecoins are gradually disrupting the payments industry. Looking back at the past month, major global payment companies have finally started paying attention to this trend. In just six weeks, we've seen a series of significant developments: Circle, the issuer of USDC, filed for an IPO on the New York Stock Exchange; Coinbase launched its stablecoin API payment standard, officially entering the agent payments space; Visa and Mastercard further strengthened their support for stablecoins; Stripe rolled out a suite of new features including stablecoin account balances, programmable stablecoins, and payment cards supporting stablecoins.
At the heart of these events lies a shared core principle: meeting user demand. This can be seen as the "Skype moment" for payments. Looking back at 2003, Skype introduced a disruptive feature—allowing users to make landline calls from their computers at much lower costs. But as more people joined digital calling networks, they eventually abandoned traditional telephony altogether, shifting to internet-based WhatsApp calls. This marked a seamless transition in technology—from landlines to mobile communications, and then to internet-based voice and data connectivity.
Likewise, connecting stablecoins with traditional payment systems enables broader access and adoption, even for users who still rely on compatibility features offered by traditional payment providers. As individuals and businesses gradually adopt stablecoins through existing products, new opportunities will emerge—stablecoins will become widely used for self-custody, shopping, remittances, DeFi, and more.
Below is a timeline of key events over the past six weeks and their significance within the larger picture:
May 7–8: Stripe launches Stablecoin Financial Accounts
Stripe announced "Stablecoin Financial Accounts," allowing business users to hold account balances in stablecoins across 101 countries. Additionally, they launched USDB, a programmable stablecoin that developers can embed into their own applications and earn rewards for building the USDB ecosystem.
Why it matters?
By embedding incentives directly at the stablecoin layer, Stripe accelerates stablecoin adoption and seeks greater control over the payment value chain. Stablecoin financial accounts allow Stripe to bypass complex processes and high fees associated with traditional banks, enabling direct competition with banks and card networks. The number of supported countries expanded from 46 to 101. USDB could become the default stablecoin across Stripe's product suite, creating additional monetization opportunities.
These moves enable Stripe to leverage neutral blockchain infrastructure instead of traditional card networks, offering products that are lower-cost, more customizable, broader in reach, and higher-margin.
May 7: MoneyGram launches "MoneyGram Ramps"
MoneyGram launched "MoneyGram Ramps," a cash on/off-ramp supporting stablecoins across more than 170 countries.
Why it matters?
Stablecoins have already found product-market fit in emerging markets, especially in regions with high remittance demand. However, converting between stablecoins and cash remains difficult, despite cash still being a widely used payment method in many markets. With its global cash network, MoneyGram provides a new way for stablecoins to interoperate with everyday spending and consumption.
May 6: Coinbase launches x402 payment standard
Coinbase introduced x402, a stablecoin payment standard designed for internet-native payments, aiming to enable atomic transactions between APIs, applications, and AI agents.
Why it matters?
You might not know that Visa cannot process payments under one cent. Future "agent payments"—transactions executed autonomously by software agents on behalf of users—will require programmable money. If we want these agents to purchase goods or services for us, stablecoins are the ideal choice.
Companies like Stripe and Visa are exploring their own agent payment solutions, but stablecoins are favored due to their foundation on trusted, neutral, and decentralized platforms. Decentralized protocols don't carry high fees, making stablecoins likely the most cost-effective option in the long run. The x402 standard integrates stablecoin settlement, intent-based payments, and compliance into a single specification, surpassing Visa and SWIFT in speed, composability, and programmability.
May 6: Visa partners strategically with BVNK
Visa announced a strategic partnership with BVNK, a stablecoin payment infrastructure provider.
Why it matters?
This collaboration represents Visa's bet on stablecoin payment infrastructure, actively participating in a payment rail that could disrupt its current business model. By partnering with BVNK, Visa not only counters Stripe's expanding stablecoin payment offerings but also secures a position in the future payment ecosystem.
Visa's strategy is smart—and we expect other traditional payment providers to follow suit, or risk being left behind by startups leading the stablecoin payment revolution.
April 28–30: Mastercard and Visa launch stablecoin payment products
On April 28, Mastercard announced broader stablecoin integrations in partnership with exchanges and wallets such as Circle, OKX, and Paxos, enabling consumers to spend stablecoin balances via Mastercard. Merchants can also settle fiat card payments directly into USDC.
Two days later, Visa announced a collaboration with Bridge, backed by Stripe, allowing fintech developers to issue Visa cards pegged to stablecoins, enabling users to spend stablecoin balances at fiat point-of-sale locations via the Visa network.
Why it matters?
These products significantly lower the barrier to stablecoin adoption by integrating with existing payment systems. Users no longer need to worry whether merchants accept stablecoins—they can simply use their linked Visa or Mastercard to pay.
While stablecoin cards achieve compatibility with traditional payment infrastructure, merchants may increasingly prefer direct stablecoin acceptance in the future to avoid high interchange fees. Entrepreneurs will also build new products that make stablecoins the preferred payment method.
April 23: PayPal announces 3.7% yield
PayPal announced that starting in 2025, U.S. users holding PYUSD in PayPal or Venmo balances will earn a 3.7% yield.
Why it matters?
PayPal aims to attract more deposits—even those currently held in MetaMask. By offering yield, they incentivize users to buy and hold stablecoins within their platform, while external usage of PYUSD generates additional revenue. Yield is just the beginning; more measures to boost PYUSD transaction volume and integration are likely to follow.
April 21: Circle launches Circle Payments Network
Circle announced the launch of the Circle Payments Network in collaboration with multiple global banks and stablecoin startups to improve international payments.
Why it matters?
Circle is directly challenging SWIFT and traditional banking networks, aiming to replace their inefficient messaging systems and payment processes. If successful, this move would fundamentally reshape the landscape of cross-border payments.
April 1: Circle files for IPO
Circle filed for an IPO on the New York Stock Exchange, marking further recognition of stablecoin payments' legitimacy.
Summary
Traditional payment companies not only recognize the value of stablecoins but are actively building critical infrastructure to make stablecoins compatible with existing systems, accelerating their adoption. While these products may resemble traditional payments in the short term, they are actually laying the foundation for an entirely new on-chain economy.
In the future, we'll see more people using stablecoins through traditional payment methods, and the infrastructure improvements launched this year will further drive direct stablecoin adoption. As stablecoin integration becomes simpler and more intuitive, network effects will kick in: more entrepreneurs will build innovative products based on stablecoins—products that can only exist in an environment of near-instant, near-zero-cost, programmable money.
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