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A16z Says “Stablecoin” Is a Remnant Term from the Volatile Crypto Asset Era
Andreessen Horowitz’s crypto division states that 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 begin gaining acceptance in mainstream finance.
The firm explains that stability is no longer the main hallmark of this category. The technology has evolved beyond its original name. Now, 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 At first, the word was useful for describing a new technology using a familiar term, but it eventually became outdated and just stuck around.
The initial problem was very simple. Back then, wild crypto asset volatility made this technology unusable for saving, borrowing, or everyday payments. Stability solved that issue. Now, stability has become the key requirement, no longer its main product.
Stablecoins currently move value across countries for transaction settlement in a matter of seconds, integrated into consumer applications, and running on programmable infrastructure. In the last few months, monthly transfer volume has surpassed major U.S. payment networks.
Stablecoin supply has already exceeded US$300,00 billion. Companies now view tokens pegged to the U.S. dollar as a payments route, not as a tool for trading crypto assets.
“Stability is now a basic requirement. It has become a necessity, not its core,” reads a quote in the post.
What Replaces “Stablecoin”
a16z expects the category will eventually change its name naturally. The firm highlights terms such as “digital dollar,” “digital euro,” and “on-chain assets” as alternatives.
Each of these terms, they say, more accurately reflects how users will use these assets.
A bigger change, they add, is that money now behaves like software—programmable and integrated directly into consumer applications.
This statement comes as the stablecoin sector reaches new highs. Companies such as Fireblocks, Circle, and Western Union have already begun building infrastructure around this asset class.
a16z says the name may not be as important as what happens next. Whether “digital dollar” becomes the replacement, or stablecoins simply dissolve into conventional finance, the firm ultimately predicts that users will continue transacting.