After the crypto downturn, stablecoin infrastructure is on the right path

By Will A-Wang

Only when the tide recedes can you see who’s swimming naked. — Warren Buffett

Clearly, this quote is highly persuasive in the market early 2026. When the crypto industry has deviated from its original cypherpunk ideals, and assets like Bitcoin have lost their narrative of “price appreciation,” with institutional dominance replacing idealism; when token design has lost its clear identity as a trusted store of value and incentive alignment, founders are stopping to replicate the old scripts of token issuance and are instead designing for real users and long-term alignment.

What we need to reflect on now is: after the wave, what has surfaced?

Chris Dixon of a16z, an advocate for Web3 value ownership, states: We have obviously entered the blockchain’s financial era, whose core idea is: blockchain introduces a new fundamental element:

The ability to coordinate personnel and capital at internet scale, embedding ownership directly into the system. (And increasingly, it’s used to coordinate AI agents.)

Key point: On internet scale, coordination, ownership (tokens representing ownership, such as fiat-backed stablecoins), and embedding (not replacing).

The internet globalizes information, and blockchain networks can turn financial infrastructure into public goods, upgrading the internet from handling information bit streams to managing monetary flows. This is what Dixon calls the “WhatsApp moment” in finance.

In this process, stablecoins are bringing the original openness and interoperability vision of the internet into finance. Given blockchain technology allows programmable stablecoins, money is essentially becoming software.

As a result, after the crypto downturn, stablecoins are transforming into application-level financial infrastructure. Their ability to coordinate personnel and capital at internet scale, embedding ownership directly into systems (whether old or new), is becoming increasingly evident.

Core insights:

• After the crypto downturn, stablecoins are evolving into application-level financial infrastructure.
• Blockchain, at internet scale, has the capacity to coordinate personnel and capital, embedding ownership (tokens) directly into existing systems.
• Stablecoins are fundamentally an evolution of financial services. The last wave of fintech built services on top of credit card systems. Today’s stablecoins will give rise to a new set of monetary applications, a trend already emerging.
• The explosion of credit card usage after the internet’s advent parallels the potential leap stablecoins could make once AI and proxy payments become widespread, with technological and financial platforms accelerating each other.
• Issuance of stablecoins is not just about creating tokens. Most branded tokens do not need to reach the scale of USDC to be “successful.”
• In closed or semi-open ecosystems, KPIs may not be market cap but could be ARPU and unit economics improvements within the ecosystem—how much additional revenue, user retention, or efficiency the stablecoin brings.
• The significance of stablecoin issuance is no longer just strategic following but strategic positioning. For branded stablecoins: tokens are the foundation, but business models are the core.
• The industry remains in early stages, infrastructure is still being refined. AI agent proxy payments are a key direction.

1. Stablecoin Financial Infrastructure

Financial infrastructure is a blockchain’s inherent trait, and stablecoins built on top combine the stability of fiat currency with the speed of crypto assets, enabling fast, borderless, inclusive digital payments.

According to Artemis Analytics, Allium, RWA.xyz, Dune Analytics, stablecoin annual transaction volume reaches $35 trillion; data from ARK Invest’s 2026 Big Ideas shows a 30-day moving average of stablecoin transactions at $3.5 trillion—2.3 times Visa, PayPal, and remittance combined. However, actual stablecoin payments per year are about $390 billion, roughly 0.02% of global payments.

(“Big Ideas 2026”: Blockchain’s positioning in future trends)

While most current stablecoin transactions stem from “crypto-native” global commerce rather than daily consumer activity, this is changing. With more improvements—such as integration with traditional financial partners and policy potential—mass adoption of stablecoins is imminent.

1.1 Corporate and Policy Drivers

Companies are beginning to recognize stablecoins’ advantages. Major tech giants, banks, and retailers are actively promoting stablecoin applications.

Fidelity Investments has issued its own stablecoin, Fidelity Digital Dollar (FIDD). Payment giant Stripe, over the past year, acquired several crypto firms and now supports stablecoin payments at checkout, reducing processing fees from about 3% to 1.5%, with room for further reduction. Payoneer recently announced plans to embed stablecoin features into its products, enabling businesses to securely receive, hold, and send stablecoins in their daily global operations, supported by Bridge (Stripe’s subsidiary). SpaceX uses stablecoins to transfer funds from fragile banking systems or under strict capital controls in countries like Argentina and Nigeria.

Ultimately, the internet may evolve into an open marketplace where machine-to-machine transactions flourish, with AI agents conducting real-time trading and settlement on behalf of users.

Stablecoins also demonstrate the deep policy and technological synergy potential. The “Genius Act” enacted last year established clear regulation for US stablecoins. Companies aiming to build stablecoin infrastructure—mainly issuers—are applying for and obtaining national trust bank licenses from the OCC based on this law. For example, Circle, Paxos, Ripple, BitGo received approvals by December 2025; Bridge obtained its license in February 2026; Anchorage had already acquired relevant credentials in 2022.

When fair competition and innovation are fostered, markets unleash their magic. The internet succeeded by this power; the US led the internet through it; stablecoins will surpass today’s payment systems with it.

1.2 Stablecoins as the Next Evolution of Financial Services

Many forget that during the early days of credit cards, there was also negative publicity: over-issuance, fraud, concerns about over-indebtedness, even moral panic. Yet, after 10-15 years, the entire modern financial system was built on credit cards. Today’s stablecoins face a similar situation: initially seen as serving only the unbanked or those lacking traditional financial access.

Fundamentally, stablecoins are an evolution of financial services. The last fintech wave built services on top of credit card systems. As a new form of money transfer, credit cards revolutionized cash flow and business models, with companies like Stripe, Square, Adyen thriving within the ecosystem.

Stablecoins are the next step in money’s evolution. Like credit cards, they feature low-cost cross-border transfer, programmability, endogenous yield, and high-frequency small payments, fostering a new suite of monetary applications already taking shape.

Post-internet, credit cards exploded; stablecoins could similarly leap forward once AI and proxy payments become widespread, with platforms and finance systems mutually accelerating.

2. Technical Stack of Stablecoin Infrastructure

In the future, when stablecoins are ubiquitous, people worldwide will use them seamlessly, often unaware they’re using stablecoins. Most will think they’re just using USD, which is largely true. The name of the stablecoin itself is less important than its reliability, near-zero cost, and instant settlement.

The abstraction between stablecoins and USD will be handled by infrastructure providers, offering fiat and digital wallets, FX liquidity via exchanges and brokers, optimized on-chain transfers and settlements, connecting local banks and fiat systems, and ensuring compliance, risk monitoring, and regulatory licensing. This end-to-end “stablecoin sandwich” enables cross-border fiat transactions, significantly improving convenience and user experience.

This includes:

• Off-chain bank account capabilities VA
• Fiat and stablecoin exchange OTC
• On-chain wallet custody Wallet
• Funds orchestration and liquidity Orchestration & Liquidity
• Payment network channels Payouts
• Stablecoin issuance Issuance
• Compliance support Compliance

(iron.xyz)

The landscape of stablecoin service providers is evolving rapidly, with companies engaging in various degrees of vertical integration—through internal development or acquisitions. Examples include Stripe’s acquisition of Bridge & Privy, OSL’s acquisition of Banxa, MoonPay’s purchase of Iron, and Tether’s investment in Anchorage Digital.

On a macro level, this shifting landscape is lowering the barriers for enterprises and PSPs to adopt stablecoins and blockchain. They aim to make stablecoin usage indistinguishable from other currencies and payment methods, so customers won’t even realize whether they’re transacting with fiat or stablecoins.

(“Stablecoins: The Next Global Payment Rail”)

3. Issuance of Stablecoins Is Not Just About Creation

Beyond assembling various technical components, stablecoin issuance services are evident across many infrastructure products. This underscores the profound potential of policy and technology alignment.

With clearer regulations post-GENIUS Act, stablecoins are transforming into application-level financial infrastructure. Brands like Western Union, Klarna, Sony Bank, and Fiserv are shifting from “integrating USDC” to using white-label issuance partners to “issue our own USD.”

3.1 Why Do Companies Launch Brand Stablecoins?

These companies recognize that stablecoins are more than just faster, cheaper payment methods. The core logic is:

• Most branded tokens don’t need to reach USDC’s scale to be “successful.”
• In closed or semi-open ecosystems, KPIs may not be market cap but could be ARPU and unit economics—how much extra revenue, user retention, or efficiency the stablecoin generates.
• Simply put, companies are no longer obsessing over “how to surpass USDC” but are focusing on “how much revenue my stablecoin can generate.”
• Economics: extracting more value from customer activity (balances and flows), gaining adjacent revenue (funds, payments, loans, cards, reserves).
• Control: embedding custom rules and incentives (e.g., loyalty), choosing settlement paths and interoperability aligned with their products.
• Better data: companies can gain richer insights without sharing transaction info with external intermediaries.
• Faster action: stablecoins enable teams to launch new financial experiences globally without rebuilding entire banking systems.

For decades, companies had no choice but to use other firms’ payment solutions, handing profits to existing payment giants and viewing payments as fixed operational costs. Stablecoins open a different path—allowing companies to design their monetary layer as carefully as their products, user experience, or supply chains, building tailored financial infrastructure.

As a result, money becomes programmable, branded, and profitable.

3.2 The Business Core of Brand Stablecoins

(“Is White-Label Stablecoin Issuance Commoditized?”)

The significance of stablecoin issuance is no longer just strategic following but strategic positioning. The issuance services are provided by infrastructure firms like Paxos, Bridge, BitGo, Anchorage Digital (adding reserve management and on-chain operations), while corporate brands have demand and distribution channels.

(“Is White-Label Stablecoin Issuance Commoditized?”)

Distribution is the most challenging part for brands. Within closed ecosystems, whether a stablecoin is used depends mainly on product decisions. Outside, coordinating and incentivizing partners is a key factor for volume and market cap. Integration and liquidity are bottlenecks; issuers often support secondary market liquidity through exchanges, market makers, incentives, and seed funding.

Currently, this remains experimental. Even though PayPal launched PYUSD early, whether it has established a sustainable business model is still questionable. As former PayPal executive David Marcus criticized after PayPal’s Q4 earnings:

“Post-spin, PayPal has a rare opportunity to build a global scaled payment network. Yet, the company focuses on building on existing networks and third-party channels. This mindset also persisted with PYUSD.

From a technical perspective, the product itself is fine. But strategically, its launch lacks compelling transaction reasons. PYUSD has distribution channels but no natural demand. It’s not deeply integrated into transaction flows, so it cannot be a true settlement layer, cross-border merchant channel, or programmable money primitive. It’s just an accessory, not a core component.”

Therefore, for branded stablecoins: tokens are the foundation, but business models are the core.

4. Future Outlook: 5-10 Years of Predominant Stablecoin Payments

Despite the crypto market retreat early 2026, the trend of stablecoins as financial infrastructure is increasingly evident. The industry remains early, infrastructure still being refined. Zach Abrams, CEO of Bridge, envisions: in the next five to ten years, most global payments will be conducted via stablecoins, primarily between non-human entities (AI agents).

When money velocity increases tenfold or hundredfold, what supporting systems are needed? What subsequent infrastructure must be built around these scenarios? All of this is accelerating.

4.1 Industry Still in Early Stages, Infrastructure Under Development

The stablecoin industry is still in its infancy. Bridge was founded just three and a half years ago, and only two and a half years ago launched its API—one of the earliest providers of stablecoin application development for enterprises. Over recent years, its products have iterated based on client needs, exploring the application boundaries of stablecoin platforms and the underlying capabilities required.

Initially, the focus was on cross-border payments, which remains a key area. Later, aid payments and large-scale batch payments emerged—clients include the US government and tech firms like Scale.ai, which uses stablecoins to pay global data annotators.

Subsequently, new banking opportunities surfaced: entrepreneurs are building innovative banking services on stablecoin infrastructure, providing solutions for regions previously lacking financial coverage. Later, heavyweight clients like SpaceX adopted stablecoins for corporate treasury management, enabling efficient cross-border fund allocation. Today, daily payment scenarios and bank card use are new growth drivers, pushing stablecoin issuance into large-scale expansion.

(bridge.xyz)

4.2 AI Agent Payments: A Key Direction

AI proxy payments are becoming a major application frontier. Demand for AI agent-based applications is exploding. Many startups are building diverse proxy payment scenarios via APIs, with some clients even applying for custom stablecoins for proxy payments. This “creative emergence” pattern involves different teams exploring their own solutions, with the market ultimately selecting winners for scale.

Zach Abrams differentiates between two early-stage scenarios:

• Short-term cautious view: most “proxy commerce” remains manual within chat interfaces—users search for products via chat and pay with bank cards. The link between this “human decision + traditional payment” chain and stablecoins is limited; migration is uncertain.

• Long-term optimistic view: pure AI proxy payments driven by platforms like Cloudflare could be disruptive—fully automated, no human intervention micro-payments designed for information access scenarios. This could fundamentally reshape internet economy models.

Currently, closed AI chat interfaces are accelerating the consumption of open internet information, severing connections between content creators and consumers. Without new value exchange mechanisms, high-quality content production will be hindered. Micro-payments supported by stablecoins offer an optimal solution—providing instant, low-cost value transfer channels for atomized information interactions, reshaping the incentive ecosystem of the open internet.

4.3 Stripe’s Strategy: Building a Developer-Friendly Full-Stack Stablecoin Platform

Stripe is acquiring Bridge, Privy, and developing its own blockchain infrastructure, Tempo, to create a comprehensive stablecoin tech stack. Its goal is to replicate the “five-line code” simplicity of integrating bank card payments, offering developers a one-stop stablecoin development platform:

• Stablecoin infrastructure (Bridge): ensuring efficient fund flow
• Account and privacy facilities (Privy): secure value storage
• Tempo chain: supporting high concurrency and high-speed payments

For Stripe’s strategic vision, it doesn’t predict which scenarios will succeed but provides neutral, open foundational tools for all developers. The future remains uncertain—this field is still in early development. But for all application developers aiming to succeed with stablecoins, several core infrastructure components will be essential.

5. Final Thoughts

Stablecoin infrastructure providers like Bridge have unique advantages: they don’t need to predict which use cases will succeed or fail. By adopting their infrastructure, developers gain early signals of future trends. These infrastructure providers often see 6 to 18 months ahead of the market, directly observing what founders and companies are building.

After the crypto downturn, stablecoin infrastructure is on the rise.