Article Author: Chris Dixon
Article Translation: Block Unicorn
Chris Dixon is a General Partner at a16z, leading its crypto investment division
The internet globalized information, and cryptocurrency is having a similar effect on money. Although recent headlines may focus on Bitcoin's price, a deeper and more lasting transformation is underway in the digital payments space. This year, stablecoins—cryptocurrencies pegged to assets like the US dollar—are gradually becoming a mainstream choice for online and international payments.
Call it the "WhatsApp moment" for money. Just as messaging apps like WhatsApp reduced the cost of international texting from around 30 cents per message to zero, stablecoins are doing the same for financial transactions. The data confirms this: last year, after excluding bot and other non-rational trading, stablecoin transaction volume exceeded $12 trillion—approaching Visa's $17 trillion in volume for the same period, but at a much lower cost.
In the process, stablecoins are bringing the original open and interoperable vision of the internet to finance. Given that blockchain technology allows stablecoins to be programmed, money is effectively becoming software.
While most stablecoin transactions currently come from "crypto-native" and global commercial activities rather than everyday consumer spending, this is changing. As more improvements are introduced, such as integration with more traditional financial partners to make user transactions easier, mass adoption of stablecoins will follow.
People around the world using stablecoins for transactions will hardly notice they are using stablecoins. Most will think they are simply using US dollars. And that is indeed the case, as the distinction between stablecoins and dollars has become very abstract for end users. Since each token is backed by one dollar or equivalent assets, the name itself doesn't matter. What matters is that the product is more reliable than any previous payment technology, almost free, and settles much faster—almost instantly.
Stablecoins also demonstrate the infinite possibilities when policy and technology align. Last year's "Genius Act" established clear rules for US stablecoins. More importantly, Congress is currently reviewing the "Clarity Act," which aims to regulate the broader blockchain networks and digital asset ecosystems that underpin stablecoins. The Clarity Act will help determine whether these networks can scale to become part of global financial infrastructure or will stagnate. When challengers are given a level playing field and space to innovate, markets work their magic. It was this magic that enabled the internet to triumph over incumbents; it was this magic that allowed the US to dominate the internet; and it is this magic that will enable stablecoins to surpass today's payment systems.
Businesses are already recognizing the advantages of stablecoins. Some of the world's largest tech companies, banks, and retailers are actively promoting the use of stablecoins, or, like Fidelity Investments, have already issued their own. Payment giant Stripe has acquired several cryptocurrency companies over the past year or so and now supports stablecoins at checkout, instantly reducing payment processing fees from about 3% to 1.5%, with plenty of room for further reduction. SpaceX uses stablecoins to move funds from countries like Argentina and Nigeria, where local banking systems are fragile or capital controls are strict. Some companies use stablecoins to pay their global employees faster. Ultimately, the internet could transform into an open marketplace where machine-to-machine transactions thrive, and AI agents conduct trades and settlements on behalf of users in real time.
The adoption of stablecoins also has an often-underestimated second-order effect: these tokens solidify the dollar's dominance in a multipolar world, thereby creating strong new demand for US Treasury bonds. Leading stablecoin issuers like Circle and Tether currently hold nearly $140 billion in short-term US government bonds directly, making them among the top 20 holders of US Treasuries today. If stablecoin adoption continues to grow at its current rate, their holdings could jump into the top 10 by next year. (Citi Research even predicts that by 2030, stablecoin holdings of US Treasuries could surpass those of foreign governments and commercial banks.)
This is not just about payments; it's about reshaping the global financial landscape. The internet gave us borderless communication; stablecoins give us borderless value transfer. With clear rules and a sound market structure, they can become the pipes and pillars of a new financial system.
