a16z: Stablecoin Term Outdated as Payments Infrastructure

Venture capital firm Andreessen Horowitz argued this week that the term "stablecoin" has outgrown its origins as a hedge against cryptocurrency volatility and may soon fade from use, as these assets evolve into core infrastructure for global payments.

The firm, through its cryptocurrency-focused arm known as a16z crypto, published a post asserting that stability has become a baseline requirement rather than a defining feature. Stablecoins now enable instant cross-border transfers, real-time settlements and programmable payments embedded in applications, functioning more like software than traditional currency. "Stability is now table stakes. It's a prerequisite, and not the point," the post stated. Andreessen Horowitz suggested alternatives such as digital dollars, digital euros or onchain assets, drawing parallels to outdated terms like "horsepower" that linger after technology advances.

This perspective aligns with rapid market growth. Stablecoin supply has surpassed 300 billion dollars, with monthly transfer volumes recently exceeding those of major U.S. payment networks. Corporations increasingly use dollar-pegged tokens for payments rather than trading, powering...