Stablecoins have emerged as the primary settlement layer for internet payments, outperforming traditional card networks Visa and Mastercard in onchain transaction volume. Alchemy's head of engineering, Noam Hurwitz, highlighted that stablecoins facilitate fast, cheap, and secure money transfers. Major companies like PayPal and others have already begun leveraging onchain infrastructure. Alchemy, which supports various stablecoin ecosystems, reports that Tether, a leading stablecoin, made significant profits while holding a vast amount of US Treasuries. However, while stablecoins are becoming dominant, challenges remain in the fragmented blockchain landscape, particularly regarding reliability and counterparty risks. The recent passage of the GENIUS Act establishes clearer regulations for stablecoins, potentially fostering innovation and supporting existing financial entities. Despite optimism around stablecoins, a report from the Bank for International Settlements raises concerns about their viability in the modern financial system, questioning their efficiency and integrity against traditional money benchmarks.

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