The term "stablecoin" will become outdated! a16z: Stability is now basic, the next is "programmable money"

a16z’s perspective points out that the term “stablecoin” is becoming outdated. Stability has become a technical baseline, and programmable money is the core innovation. This technology enables real-time settlement, embedded finance, and composability, symbolizing the industry’s move into maturity.

On May 1, a16z crypto published an opinion article written by Robert Hackett, arguing that the term “stablecoin” is rapidly becoming obsolete. Hackett’s main point is: when these assets were first invented, “whether they can maintain a 1:1 peg to the US dollar” was the key achievement, so “stability” became the focus of the name; but as of 2026, stability is now a basic threshold, not a selling point. The true value of this technology lies in “programmable money”—which can settle cross-border transactions instantly, be embedded into applications, and be combined and invoked like software.

Core argument: “Stability” is now the baseline, and programming is the innovation

Hackett’s key sentence in the article is: “Stability is now a basic threshold (table stakes), a prerequisite, not the focus.” The corresponding observation is: when users and institutions use assets like USDT, USDC, PYUSD, DAI, they no longer ask, “Can it maintain a 1:1 peg to the dollar?” That question itself is assumed to be yes. The real question driving usage becomes: “What else can we build with it?”

“Programmable money” is specifically manifested in three aspects:

• First, real-time cross-border settlement—traditional SWIFT systems take 1-3 business days, while on-chain stablecoin transactions are completed within 30 seconds;
• Second, embedded finance—applications can embed payment logic into smart contracts, such as MoonPay’s May 1 launch of MoonAgents Card, allowing AI agents to directly spend stablecoins via Mastercard;
• Third, composability—stablecoins can serve as foundational assets for DeFi protocols, seamlessly integrating with lending, derivatives, and yield strategies.

Evolution of terminology: four candidates and the “horsepower fate”

Hackett suggests that the future evolution of the term “stablecoin” could go in several directions: “digital cash,” “programmable money,” “digital dollars/euros,” or simply “onchain assets.” But he predicts the ultimate fate may be twofold: either the term “stablecoin” continues to exist like “horsepower,” but people no longer remember its literal meaning; or it simply disappears, becoming an intangible infrastructure for “how money operates.”

The horsepower analogy is very fitting—the unit was originally a marketing term used by James Watt in the 18th century to convert steam engine performance into “equivalent to several horses” for buyers to understand. Today, humans no longer rely on horses to power machinery, but “horsepower” still appears in car, engine, and motor specifications as a pure technical unit. Stablecoins may follow the same path: when the technology matures and stability as a baseline is no longer worth highlighting, the term “stablecoin” will only remain as a historical remnant.

Implications for the crypto industry: the shift in terminology as technology matures

Hackett’s view is not just wordplay but a signal that the crypto industry is entering a “technology maturity” phase. Tether announced on May 1 a Q1 net profit of $1 billion, with reserves of $8.2 billion; USDT’s financial infrastructure status is now comparable to a Systemically Important Financial Institution (SIFI). On April 28, a16z proposed stablecoin-based BaaS (Banking-as-a-Service), treating stablecoins as foundational components of banking services; this commentary on May 1 elevates the terminology of this trend to the forefront.

For crypto entrepreneurs and investors, the practical implications are threefold:

• First, product design and market narratives no longer need to emphasize “we maintain the 1:1 peg”—this is already assumed by users;
• Second, differentiation comes from “programmable capabilities”—composability, embedability, and autonomous use by AI agents;
• Third, future projects may avoid using the label “stablecoin” altogether, instead adopting more precise terms that describe their functions (such as “on-chain payment rail” or “programmable USD asset”).

The evolution of terminology is often the last mile of technological maturity. When the term “stablecoin” becomes completely outdated, cryptocurrencies may truly enter a stage where “money just works this way” as a normal part of financial infrastructure.

• This article is reprinted with permission from: 《Chain News》
• Original title: 《a16z Comments: The Term “Stablecoin” Will Be Obsolete, Next Is “Programmable Money”》
• Original author: Elponcrab