a16z Crypto Founder: The WhatsApp Moment for Web3 Has Arrived

Article Author: Chris Dixon

Article Translation: Block unicorn

Chris Dixon is a general partner at a16z, leading its crypto investment division.

The internet has globalized information, and cryptocurrencies are having a similar impact on money. While recent headlines may focus on Bitcoin’s price, a deeper and more lasting transformation is underway in digital payments. This year, stablecoins—cryptocurrencies pegged to assets like the US dollar—are gradually becoming the mainstream choice for online and international payments.

Let’s call it the “WhatsApp moment” for money. Just as messaging apps like WhatsApp reduced the cost of international texts from around 30 cents per message to zero, stablecoins are doing the same in financial transactions. Data confirms this: last year, after removing bots and other irrational trades, stablecoin trading volume exceeded $12 trillion—approaching Visa’s $17 trillion in transactions last year, but at a much lower cost.

In this process, stablecoins are bringing the original open and interoperable vision of the internet into finance. Given that blockchain technology allows stablecoins to be programmable, money is essentially becoming software.

Although most stablecoin transactions currently come from “crypto-native” and global commercial activities rather than everyday consumer use, this is changing. With more improvements—such as integration with traditional financial institutions to make trading easier—mass adoption of stablecoins is on the horizon.

People around the world using stablecoins for transactions often don’t realize they’re using stablecoins. Most think they’re just using dollars. And that’s true, because the distinction between stablecoins and dollars has become highly abstract for end users. Since each token is backed by one dollar or an equivalent asset, the name itself doesn’t matter. What matters is that the product is more reliable than any previous payment technology, nearly free, with much faster settlement—almost instant.

Stablecoins also demonstrate the limitless possibilities when policy and technology align. Last year’s Genius Act in the U.S. set clear rules for stablecoins. More importantly, Congress is currently considering the Clarity Act, which aims to regulate the broader blockchain networks and digital asset ecosystems supporting stablecoins. The Clarity Act will help determine whether these networks can scale and become part of the global financial infrastructure or remain stagnant.

When a level playing field and space for innovation are provided for challengers, markets unleash their magic. The internet has thrived on this power against traditional giants; the U.S. has led the internet because of it; and stablecoins will surpass today’s payment systems through the same force.

Companies are already recognizing the advantages of stablecoins. Some of the world’s largest tech firms, banks, and retailers are actively promoting stablecoin adoption, or like Fidelity, have issued their own stablecoins. Payment giant Stripe, over the past year, has acquired several crypto companies and now supports stablecoin payments at checkout, instantly reducing processing fees from about 3% to 1.5%, with significant room for further reduction.

SpaceX uses stablecoins to transfer funds out of countries with fragile banking systems or strict capital controls, such as Argentina and Nigeria. Some companies use stablecoins to pay their global employees faster. Ultimately, the internet could evolve into an open marketplace where machine-to-machine transactions flourish, with AI agents trading and settling on behalf of users in real time.

The widespread adoption of stablecoins will also produce an often underestimated secondary effect: these tokens reinforce the dollar’s dominance in a multipolar world, creating strong new demand for U.S. Treasuries. Leading stablecoin issuers like Circle and Tether currently hold nearly $140 billion in short-term U.S. government bonds, making them among the top 20 holders of U.S. debt today.

If stablecoin adoption continues to grow at this pace, by next year, stablecoin holdings could rank among the top 10. (Citi Research even predicts that by 2030, the amount of U.S. debt held via stablecoins could surpass that held by foreign governments and commercial banks.)

This is not just about payments but about reshaping the global financial landscape. The internet enables borderless communication, and stablecoins enable borderless value transfer. With clear rules and well-structured markets, they can become the pipelines and pillars of a new financial system.