Institutional finance has always needed a settlement layer that moves money between organizations. For decades, that layer was correspondent banking, slow and batch-based. In 2025 alone, stablecoins moved about $33 trillion, roughly double Visa’s annual payment volume, signaling a shift in settlement dynamics. The GENIUS Act, enacted in mid-2025, created a federal framework for payment stablecoins, unlocking broader institutional adoption, and by January 2026, monthly stablecoin transfers reached about $10.5 trillion.
Stablecoins sit between minting and redemption in four layers. At the supply layer, Circle mints USDC and Paxos mints PYUSD and USDG for Mastercard’s network. The distribution layer channels tokens through Coinbase and Wintermute. The custody layer centers on Fireblocks, tying to Visa and other settlement rails, while the integration layer includes Visa, Mastercard, and Stripe for settlement analytics.
Four TradFi strategies plug into the same core infrastructure, with no new rails built. Visa committed to $3.5 billion annualized in USDC on Solana, across four stablecoins and four chains, while Stripe Bridge powers stablecoin-backed accounts in 101 countries. Mastercard joined the USDG network, and PayPal issued PYUSD across 70 markets. JP Morgan settled debt in USDC on Solana, illustrating broad institutional settlement on these rails.
None built new rails; the rails exist because a small group of providers built faster, cheaper pipes available 24/7. The stablecoin stack comprises four concentrated layers—minting, distribution, custody, and integration—dominated by a handful of players. The next wave of adoption may diversify dependency or deepen it.
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