Dollar stablecoins have achieved complete market dominance in crypto payment cards, with USDC and USDT now accounting for 84% of card spending as euro-backed tokens retreat to just 2%. According to a16z crypto's latest report, this represents a dramatic shift from early 2024 when euro-backed EURe dominated with 88% of card volume. The transformation shows USDC handling about 58% of card spending and USDT about 26%, compared to near 48% and 7% respectively a year ago. As reported by a16z, "Crypto payment card spending now happens overwhelmingly in digital dollars."
Crypto card spending has experienced explosive growth, with monthly volume reaching $759 million in July 2026, representing a 2.5x jump from $306 million a year earlier. When tracking began in October 2023, monthly volume sat below $1 million. Cardholders made nearly 9 million purchases in July, up from about 5.2 million a year ago, with the average purchase amounting to about $86. The growth coincided with a wave of new card programs and settlement chains, with Optimism (OP) now carrying about 29% of card volume, while Solana (SOL) and Base each hold near 19%, and Gnosis has dropped to roughly 2%.
The stablecoin market has experienced significant growth, with transaction volume reaching $4.8 trillion in the past 30 days. According to a16z, this comes as Circle's USDC has dethroned Tether's USDT in 2026, marking a shift in market leadership. The Stablecoin Supply Ratio (SSR) RSI has bounced back from 2026 lows but hasn't reached the high levels linked to earlier sell signals. At the beginning of the year and during the May-June rally, significant BTC corrections followed red sell signals accompanied by elevated SSR RSI levels. However, with time, SSR RSI dropped and generated green buy signals as Bitcoin dropped toward the $60,000-$70,000 range, indicating that stablecoin liquidity had grown comparatively stronger in relation to Bitcoin's market value in H2 2026.
Several protocols represent different approaches to PayFi infrastructure. According to CoinDesk, Huma Finance is the most prominent by total value locked, allowing businesses to finance real-world payment flows using on-chain capital with working capital backed by receivables. Superfluid enables continuous per-second payment streaming for applications beyond payroll, while Sablier provides token vesting and payroll distribution solutions. The infrastructure includes stablecoins like USDC and USDT, blockchain networks including Solana and Ethereum, and regulated on-ramps and off-ramps for fiat conversion.
Regulatory developments are shaping the PayFi landscape. As reported by CoinDesk, the EU's MiCA regulation and proposed US stablecoin legislation would create licensing requirements for stablecoin issuers, potentially legitimizing PayFi by providing regulatory clarity or constraining it through compliance costs. The GENIUS Act and STABLE Act are advancing through Congress, which would create a licensing framework for stablecoin issuers and require reserve backing. Additionally, Visa and Mastercard have announced stablecoin integration programs, which could merge PayFi infrastructure with existing merchant payment flows rather than competing with them.
The growing adoption of crypto cards significantly expands access to stablecoin payments. As noted by a16z, crypto cardholders don't require traditional bank accounts, with users either depositing stablecoins with card issuers or holding them directly on-chain through self-custody. This infrastructure allows businesses to accept standard fiat payments without having to accept cryptocurrency directly, making stablecoins more accessible for daily spending. Compared to assets like Bitcoin, stablecoins are more useful for daily spending because they are designed to maintain comparatively steady value, making them increasingly valuable as practical tools for both in-person payments and digital assets. Even so, crypto card spending remains small compared to traditional networks, which process trillions of dollars each month.
