The term "stablecoin" will become outdated!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a16z’s perspective points out that the term “stablecoin” is becoming outdated.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 technological 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 core point is: when these assets were first invented, “whether they can maintain a 1:1 peg to the 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”—capable of instant cross-border settlement, embedded in applications, and composable like software.

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

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: users and institutions, when using assets like USDT, USDC, PYUSD, DAI, no longer ask “Can it maintain a 1:1 peg to the dollar?” That question has already been assumed to be yes. The real question driving usage becomes: “What else can we build with it?”

“Programmable money” manifests concretely 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 “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 in the 18th century, used by James Watt 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: once the technology matures and stability at the baseline is no longer worth highlighting, the term “stablecoin” will only be a relic of history if it continues to exist.

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 “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 banking components. This commentary on May 1 elevates the vocabulary implications of this trend.

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

• First, product design and market narratives no longer need to emphasize “we maintain the 1:1 peg”—this is already a user preset;
• Second, differentiation comes from “programmability”—composability, embedability, and autonomous use by AI agents;
• Third, future projects may no longer use the label “stablecoin” but shift toward more precise descriptions of functionality (e.g., “on-chain payment rail,” “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 the stage of “money operates 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