Venture investors have recently demonstrated a strong interest in "programmable money," a digital currency with built-in rules governing its usage, by injecting nearly $100 million into stablecoin startups. This surge of investment highlights the growing recognition of programmable money's potential to revolutionize various sectors, from finance to supply chain management.
M0, a Switzerland-based platform that enables developers to issue custom stablecoins, recently secured $40 million in a Series B funding round led by Polychain Capital and Ribbit Capital. Founded in 2023, M0 aims to provide developers with the building blocks to create and manage their own digital money, tailoring it to specific business and application needs. The platform separates stablecoin reserve management from programmability, allowing developers to launch application-specific digital currencies without the need for a centralized issuer. M0's infrastructure has already been integrated into consumer-facing apps through partnerships with projects like MetaMask and Playtron.
Rain, a US-based startup developing tools for banks to issue regulated stablecoins, has also garnered significant attention, securing $58 million in a Series B funding round led by Sapphire Ventures. Additional backing came from Dragonfly, Galaxy Ventures, and Samsung Next, bringing Rain's total funding to $88.5 million. Rain issues Visa payment cards backed by stablecoins, enabling businesses to issue cards that spend USDC and other stablecoins directly on existing payment networks. Company executives have noted an acceleration in the adoption of stablecoin-linked payments in 2025, driven by firms seeking faster and cheaper cross-border transactions.
These funding rounds coincide with the stablecoin market capitalization reaching a record $280 billion. Stablecoins, designed to reduce the volatility of cryptocurrencies by pegging their value to a stable asset like the US dollar, have gained traction as a reliable means of conducting transactions using blockchain technology. While most stablecoins function as simple payment tokens, programmable money introduces a new layer of functionality by enabling issuers to enforce conditions automatically through blockchains and smart contracts.
The concept of programmable money is not entirely new. For example, one common analogy is food stamps limited to groceries. However, the recent advancements in blockchain technology and the increasing adoption of stablecoins have paved the way for more sophisticated and versatile applications of programmable money.
The rise of programmable assets also presents opportunities and challenges for startups. Regulatory compliance will be a major hurdle as governments establish frameworks for digital currencies. Startups will need to invest in technology and talent to harness these innovations effectively. However, the potential payoffs are substantial. Embracing programmable assets can streamline operations and reduce costs. A B2B crypto payment platform, for example, could facilitate seamless cross-border transactions, enabling businesses to expand globally. Plus, integrating crypto payroll solutions can attract top talent in a competitive job market.
The UAE's Digital Dirham is a prime example of how programmable assets can transform banking. As a central bank digital currency (CBDC), it aims to improve payment efficiency and cut transaction costs. By leveraging blockchain, the Digital Dirham allows real-time tracking and verification of transactions, enhancing trust in the financial system.
As we move forward, the convergence of AI, blockchain, and capital will likely create new opportunities for startups and established financial institutions in the realm of programmable assets.
