Programmable Money, Immutable, Consequences: Regulatory Convergence, Stablecoin Designs, and VC Strategy

Abstract

This thesis examines stablecoins as programmable financial instruments with growing relevance across payments, capital markets, and digital infrastructure. As blockchain- based assets designed to maintain price stability, stablecoins sit at the intersection of monetary policy, regulation, and venture investment. The research is conducted within the context of Maven 11, a venture capital firm specializing in digital assets. It maps the evolution of stablecoins from simple payment tools to foundational layers in global finance. The thesis introduces a rating framework to assess stablecoin risk across five dimensions: regulatory exposure, depegging risk, counterparty risk, backing quality, and redemption rights. This model provides a basis for reevaluating projects as regulation and design trends shift. Key regulatory developments such as the EU’s MiCA and the U.S. GENIUS Act are analyzed to outline how future designs may be constrained or enabled by compliance requirements. The thesis also contrasts fiat- backed, algorithmic, and synthetic stablecoins, including a deeper look at novel models like Ethena’s USDe. Findings show that stablecoins’ disruptive potential lies not only in technical design but in their ability to sidestep traditional intermediaries and realign global capital flows. However, widespread adoption remains gated by infrastructure gaps, regulatory clarity, and accounting treatment. The core recommendation for investors is to build dynamic, forward-looking evaluation processes rather than static theses. As the landscape evolves, adaptability and regulatory awareness are key to identifying category-defining winners in the stablecoin space.