Venture capital giant Andreessen Horowitz (a16z) has published research arguing that the term "stablecoin" may no longer be relevant as the digital asset space matures. What began as a tool to mitigate volatility has evolved into core financial infrastructure, and the firm believes the label has become outdated.
According to a16z, stablecoins are rapidly transitioning from a niche crypto product into a foundational layer for global payments. Their key differentiator is no longer just price stability but their utility as programmable money that can move like software. Transactions are now instant, settlement is real-time, and the system offers open access to anyone with an internet connection, bypassing traditional intermediaries.
The firm draws a parallel to the term "horsepower," which remains in common use despite no longer accurately describing how modern engines are understood. Similarly, "stablecoin" points to a problem—price volatility—that has largely been solved, rather than the asset's current role in powering a new financial system.
Alternative labels such as "digital dollars" or "programmable money" are gaining traction for being more accurate descriptors. However, a16z acknowledges that language favors first movers, making "stablecoin" the default term even as its meaning shifts. The firm expects that as adoption accelerates, the terminology will matter less, and users will simply interact with digital versions of national currencies without focusing on the underlying mechanics.
Market projections reinforce this view, with stablecoins expected to reach trillions of dollars in circulation, driven by use in payments, remittances, and decentralized finance (DeFi). This growth, a16z suggests, will make the term feel increasingly outdated.
