a16z Partner: Stablecoins Are Having Their WhatsApp Moment
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a16z Partner: Stablecoins Are Having Their WhatsApp Moment
The internet has given us borderless communication, while stablecoins provide us with borderless value transfer.
Navigating Web3 tides with focused insightsBy Chris Dixon, General Partner at a16z
Translated by TechFlow
TechFlow Intro: The internet globalized information; cryptocurrencies are doing the same for money. In this piece, Chris Dixon—the head of a16z Crypto—argues that stablecoins are having their “WhatsApp moment”: just as WhatsApp reduced the cost of cross-border SMS to zero, stablecoins are making cross-border payments nearly free and instantaneous. In 2024, stablecoin settlement volume is approaching Visa’s, and their position as one of the top 20 holders of U.S. Treasury securities is quietly reinforcing the dollar’s dominance in an increasingly multipolar world. This is not merely a payment technology upgrade—it is a profound restructuring of the global financial system.
Full Text Below:
The internet globalized information. Cryptocurrencies are now doing something similar for money. While recent headlines may still focus on Bitcoin’s price, a deeper, more enduring transformation is quietly underway in digital payments. This year, stablecoins—cryptocurrencies pegged to assets like the U.S. dollar—are officially entering the mainstream for online payments and international settlements.
We can call this money’s “WhatsApp moment.” Just as messaging apps like WhatsApp reduced the cost of international SMS from 30 cents per message to zero, stablecoins are delivering the same effect in financial transactions. The data confirms it: after filtering out bots and non-genuine activity, stablecoin transaction volume exceeded $12 trillion last year—a figure now approaching Visa’s $17 trillion in annual volume, yet at a fraction of the cost.
In the process, stablecoins are bringing the internet’s original vision of openness and interoperability into finance. Thanks to blockchain technology, stablecoins are programmable—and money itself is effectively becoming software.
While most stablecoin transactions today stem from crypto-native activity and global business operations—not everyday consumer spending—that is changing. As more user-friendly improvements roll out—including integrations with additional traditional financial (TradFi) partners—mass adoption will follow.
In the future, people around the world will conduct stablecoin-powered transactions without even noticing the underlying technology. Most will simply think they’re using dollars—and they are. For end users, the distinction between stablecoins and dollars is becoming abstract. Because each token is backed by one U.S. dollar or its equivalent, the name doesn’t matter. What matters is that this product is more reliable than any previous payment technology—and, given near-instant settlement, it’s effectively free and light-years ahead of existing alternatives.
Stablecoins also demonstrate the potential unleashed when policy aligns with technology. Last year’s GENIUS Act established clear U.S. rules for stablecoins. Even more critically, Congress is now considering the CLARITY Act, which would regulate the broader ecosystem—including the blockchain networks underpinning stablecoins and digital assets. The CLARITY Act will help determine whether these networks expand to become part of global financial infrastructure—or stagnate. When challengers are given a level playing field and room to innovate, markets work their magic. That’s how the web defeated legacy enterprises, how the U.S. led the internet era—and how stablecoins will surpass today’s payment architecture.
Enterprises have already recognized stablecoins’ advantages. Some of the world’s largest technology companies, banks, and retailers are piloting stablecoin-based initiatives—or, like Fidelity, have already launched their own stablecoins. Payment giant Stripe has acquired several crypto firms over the past year and now supports stablecoins at checkout, instantly cutting processing fees from roughly 3% to 1.5%, with further reductions still possible. SpaceX uses stablecoins to move funds out of countries like Argentina and Nigeria, where local banking systems are fragile or capital controls strict. Some companies use stablecoins to pay employees globally—faster and more efficiently. Ultimately, the internet could evolve into a thriving open marketplace powered by machine-to-machine (M2M) commerce, where AI agents transact and settle contracts on behalf of users—in real time.
Stablecoin adoption also produces an often-overlooked second-order effect: in a multipolar world, these tokens reinforce the dollar’s dominance—and create a powerful new source of demand for U.S. Treasuries. Leading stablecoin issuers like Circle and Tether now hold nearly $140 billion in short-term U.S. government debt directly—placing them among the top 20 holders of U.S. Treasuries today. If current growth rates continue, stablecoin issuers will rise to the top 10 by next year. (Citi Research even envisions a scenario where, by 2030, stablecoin-held U.S. Treasuries could surpass those held by foreign governments and commercial banks.)
This is about far more than payments. It is a global financial reorganization. The internet gave us borderless communication; stablecoins give us borderless value transfer. With clear rules and market structure, they can become the pipes—and pillars—of a new financial system.
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