Stablecoins are rapidly evolving into a key component of global financial infrastructure, according to a recent report by a16z. The report highlights a significant increase in stablecoin transaction volume, which reached $4.5 trillion in Q1 2026. This growth is driven by a surge in consumer-to-merchant transactions, which rose by 128% year-over-year to 285 million transactions. The report also notes a substantial rise in monthly collateral deposits for stablecoin card programs, climbing from nearly zero at the end of 2024 to over $3 billion by early 2026. Additionally, the velocity of stablecoin circulation has more than doubled, increasing from 2.6x in early 2024 to 6x, underscoring the expanding role of stablecoins in local payments, particularly in Asia and Brazil.