A16z proposes rethinking name of stablecoins

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A16z proposes rethinking name of stablecoins

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Eugene Komchuk

04.05.2026

A16z proposes rethinking name of stablecoins — The new reality of stablecoins

Stablecoins may need a new public image, as their role has long moved beyond crypto trading. This was stated by Robert Hackett, head of special projects at a16z crypto.

According to the company’s official website, the word “stablecoin” emerged during the early stage of the crypto market. At the time, the industry needed tokens that could maintain a stable value during sharp price swings. That is why the name reflected the main purpose of such assets — protection from volatility.

However, Hackett believes this wording no longer describes the real role of stablecoins. He noted that stability has become a basic requirement, not the main advantage. In other words, the question is no longer whether such assets can maintain their peg to the dollar or another asset, but what can be built on top of them.

Why stablecoins are needed

Today, stablecoins are used not only for cryptocurrency trading. They are used for payments, transfers, settlements, savings products, and financial applications on public blockchains.

The debate over renaming them is becoming increasingly visible among developers. Developer and brand adviser John Palmer previously said that calling such assets stablecoins already feels like a mistake, as this category could expand the use of cryptocurrencies far beyond today’s market.

Hackett also suggested that terms such as “digital money” or “programmable money” may better reflect the essence of the technology. However, he admitted that such names may be too awkward for mass adoption.

In his view, old names often remain even after the technology changes significantly. As examples, he cited the terms “horsepower” and email. Hackett believes that over time, people may more often speak not about stablecoins, but about digital dollars, digital euros, and other onchain assets.

Market leaders

According to DefiLlama, the stablecoin market capitalization has exceeded $320 billion, while USDT accounts for about 59%. This makes Tether the sector’s main player: its token is used on exchanges, in DeFi, for transfers, and as a digital version of the dollar in countries with unstable currencies. USDT has become the de facto liquidity standard for the crypto market.

USDC from Circle remains the second major player. Its share is lower than that of USDT, but it is more focused on the regulated market, institutional clients, and payment infrastructure.

As a reminder, Tether recently introduced a wallet that allows users to store not only stablecoins, but also Bitcoin and gold.

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