Stablecoins have emerged as the dominant settlement layer for institutional finance, surpassing traditional banking systems. In 2025, stablecoins facilitated $33 trillion in transactions, doubling Visa's annual payment volume. Major financial institutions like JP Morgan and Visa have adopted stablecoins such as USDC for debt settlements and payment processing, respectively. The total stablecoin market cap reached $317.89 billion by April 2026, driven by regulatory frameworks like the GENIUS Act, which encouraged institutional adoption. Circle and Paxos are the primary minters of stablecoins, with Circle's USDC moving $8.3 trillion in January 2026 alone. These stablecoins bypass traditional banking channels, with distribution handled by entities like Coinbase and Wintermute. Custody is managed by firms such as Fireblocks, which holds significant amounts of USDG and USDC. This infrastructure supports major players like Visa, Mastercard, and PayPal, who have integrated stablecoins into their operations, highlighting a shift towards a more efficient, 24/7 settlement system. The stablecoin infrastructure is concentrated among a few providers, raising questions about future diversification. As institutions continue to rely on these digital assets for settlement, the dependency on a limited number of providers could either deepen or diversify with the next wave of adoption.