a16z crypto released a report stating that stablecoins are integrating functions like accounts, payments, forex, and credit, reducing reliance on the traditional banking system. However, fiat conversion liquidity remains a major bottleneck. At the same time, competition in stablecoin issuance is shifting to the regulatory level, with licensing and compliance status influencing their role in the financial system. Additionally, stablecoins are being used in emerging markets to access dollar assets and may further drive the development of on-chain credit.