TL;DR:
- a16z argued that the term “stablecoin” no longer reflects the role these assets play in today’s global financial system.
- Robert Hackett, from a16z crypto, compared the word to “horsepower”: useful at its origin, but anchored to a problem the industry has already moved past.
- Visa reported that stablecoin supply grew more than 50% in 2025, reaching $274 billion, with transaction volume on track to hit $10 trillion.
The venture capital firm a16z published an analysis in which it questions whether the term “stablecoin” remains adequate to describe the role these digital assets occupy today in the global financial system.
Robert Hackett, head of special projects at a16z crypto, argued that the word emerged in the early years of the ecosystem, when extreme volatility made it impossible to use blockchain networks for everyday transactions. In that context, the name made sense: it described an asset designed not to collapse. The problem, according to Hackett, is that the term still points to that original problem rather than to the infrastructure now being built on top of it.
To illustrate the point, Hackett drew on the analogy of “horsepower“: a unit of measurement that in the nineteenth century helped explain steam engines by comparing them to draft horses, but that today persists with no real connection to the animal. In the same way, “stablecoin” may have been useful for introducing the concept of stable digital money, but anchors the category to a partial solution rather than describing it as an expanding financial platform.
A16Z Compares ‘Stablecoins’ to ‘Horsepower’
According to a16z crypto, stablecoins are part of a new global financial layer. According to the firm, these assets already support instant cross-border payments, dollar access in emerging markets, credit and investment products, and immediate settlement of transactions — functions that the traditional financial system takes days to execute or simply does not offer to millions of users.
Market data makes the scale of the phenomenon clear. Visa reported that the total supply of stablecoins surpassed $274 billion in December 2025, up from $186 billion a year earlier, a growth of more than 50%. Adjusted transaction volume was on track to exceed $10 trillion during that year.
Time Will Dictate the Replacement of Terms
Hackett does not propose a definitive replacement for the term, though he mentions alternatives such as “digital money” or “programmable money“. He acknowledges that the first term to gain traction tends to retain a permanent advantage, and that “stablecoin” will most likely coexist with the technology for several more years, until programmable money becomes so ubiquitous that the name ceases to matter.
