A16z: ‘Stablecoin’ is outdated as digital dollars rise

Andreessen Horowitz’s crypto unit wrote in a post this week that the label ‘stablecoin’ no longer captures how dollar-pegged tokens are used, arguing the term is a relic of crypto’s early volatility.

The firm presented market data showing monthly stablecoin transfers at about $7.2 trillion in February 2026, compared with $6.8 trillion for the U.S. Automated Clearing House network and $1.2 trillion for Visa that month. Stablecoin supply has climbed past $300 billion, the post noted.

The post described stability as a baseline feature rather than the defining characteristic of the asset class and compared the label to ‘horsepower’—useful early on but obsolete once the technology is familiar. “Stability is now table stakes. It’s a prerequisite, and not the point,” the post read.

According to the firm, dollar-pegged tokens are being used as fast, programmable rails for moving value across borders, embedding into consumer apps and settling in seconds. Corporations and financial services increasingly treat the tokens as payments infrastructure rather than tools for trading.

The post named companies building around dollar-pegged tokens, including Fireblocks, Circle and Western Union, and highlighted work on custody, settlement and cross-border payments.

a16z suggested alternative labels such as ‘digital dollars’, ‘digital euros’ and ‘on-chain assets’, and said the original name may fade or be replaced quietly as businesses and users keep transacting. “The name may matter less than what comes after it,” the firm wrote.

Stablecoins were introduced to address crypto volatility by providing a token pegged to a fiat currency so value could move on-chain while preserving a stable unit of account. The post said broader adoption has moved the tokens into corporate and consumer payments.