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A16z Says “Stablecoin” Is a Remnant Term from the Volatile Crypto Asset Era

Andreessen Horowitz’s crypto division says the term “stablecoin” is now a relic from the early, turbulent days of the crypto asset industry. The firm believes this label will gradually be left behind as digital dollars start being accepted in mainstream finance.

The firm explains that stability is no longer the defining feature of this category. The technology has evolved beyond its original name. Today, stablecoins sit at the center of the global payments system.

Stability Is the Foundation, Not the Main Value

In a post published this week, a16z compares “stablecoin” to “horsepower.” At first, the word was useful for describing a new technology using a familiar term, but it eventually became outdated and simply stuck around.

The initial problem was very simple. The wild volatility of crypto assets previously made this technology unusable for saving, borrowing, or everyday payments. Stability has solved that issue. Now, stability has become a primary requirement, not its main product.

Stablecoins today move value across borders for transaction settlement within seconds, are integrated into consumer applications, and run on programmable infrastructure. In the last few months, monthly transfer volumes have surpassed major U.S. payment networks.

The supply of stablecoins has already passed the figure of US$300,00 billion. Companies now view tokens pegged to the dollar as a payment route, rather than a tool for trading crypto assets.

“Stability is now a basic requirement. It has become a necessity, not its core,” the post quotes.

What Replaces “Stablecoin”

a16z expects this category to eventually change its name naturally. The firm highlights terms such as “digital dollar,” “digital euro,” and “on-chain assets” as alternatives.

According to the firm, each of these terms more accurately reflects how users will use these assets.

A bigger change, they add, is that money now behaves like software—programmable and directly integrated into consumer applications.

This comes as the stablecoin sector reaches new records. Companies such as Fireblocks, Circle, and Western Union have already started building infrastructure around this class of assets.

a16z says the name may not be as important as what comes next. Whether “digital dollar” becomes the replacement, or stablecoins simply dissolve into the world of conventional finance, the firm ultimately predicts that users will continue transacting.