A16z Argues Stablecoin Label Outdated as $320B Category Evolves, May 1 Report

According to a report by A16z crypto on May 1, the firm argues the term "stablecoin" has outlived its usefulness as digital dollars and on-chain assets move into mainstream finance. Robert Hackett, head of special projects at a16z crypto, compared the label to outdated terminology like "horsepower," noting that stability is now a basic prerequisite rather than the defining feature.

Total stablecoin market capitalization now sits near $320 billion, with USDT holding approximately 59% market share, according to DefiLlama data. A16z suggests more accurate alternatives such as "digital dollars," "digital euros," and "on-chain assets" to better describe how users will engage with these assets as the category matures.