Investors Embrace Programmable Money
Investors are showing increasing enthusiasm for the incorporation of programmable money by directing almost $100 million towards startups focusing on stablecoin infrastructure. A notable development is M0, a Swiss platform that enables developers to create tailored stablecoins, which recently secured $40 million in a Series B funding round led by Polychain Capital and Ribbit Capital. Launched in 2023, M0 has collaborated with several projects, including MetaMask and Playtron, to implement its technology into consumer applications.
Funding Success of Rain
In a related funding effort, US-based Rain has successfully raised $58 million, also in a Series B, backed by Sapphire Ventures, with contributions from Dragonfly, Galaxy Ventures, and Samsung Next. This brings Rain’s total funding to $88.5 million, as it focuses on providing banks with tools to issue compliant stablecoins.
Market Surge and Programmable Money
The announcements coincide with an unprecedented surge in the market capitalization of stablecoins, which reached $280 billion, as reported by DefiLlama. The recent investments highlight a revived investor focus on “programmable money” (PM)—digital currencies equipped with inherent rules dictating their use. These mechanisms are distinct from traditional assistance programs like vouchers since they rely on smart contracts and blockchain technology for automatic enforcement of conditions.
Distinct Features of M0 and Rain
While many stablecoins can be classified as programmable due to their blockchain foundations, M0 and Rain stand out by integrating robust programmability into their services. M0’s model allows for the creation of stablecoins designed for specific applications, replete with built-in rules governing liquidity and usage. Notably, Playtron has implemented an M0-enabled “Game dollar” within its gaming handheld.
Rain emphasizes managing the flow of funds, offering instantaneous and compliant payroll solutions across over 100 jurisdictions through its agreement with Toku. The company has broadened its operations to include support for multiple blockchain platforms like Solana, Tron, and Stellar, facilitating programmability in payment systems.
Government Initiatives in Programmable Money
The exploration of programmable money is not confined to the private sector; various governments are also venturing into this domain. For instance, in July 2024, Kazakhstan initiated a pilot program employing its digital tenge CBDC to fund infrastructure linked to a rail project with China. This experiment features a programmable token that only disburses payments upon achieving predetermined milestones, aiming to enhance transparency in governmental projects.
In another pilot conducted in October 2024, Kazakhstan’s National Bank showcased a method for expediting VAT refunds through automation, trimming processing times significantly from about 75 days to just a fortnight. Similarly, the Monetary Authority of India’s digital rupee pilot has begun to implement programmable capabilities aimed at improving user accessibility and customizing payment flows. However, the introduction of Central Bank Digital Currencies (CBDCs) and their programmability has sparked debate; financial analyst Susie Violet Ward has expressed concerns that such measures could lead to the “weaponization of money”.
Private Sector Innovations
Meanwhile, the private sector is also innovating in this space. In June 2024, Circle launched programmable wallet features on the Solana blockchain, enabling transactions with USDC to engage smart contracts autonomously and manage transaction fees automatically. More recently, in July 2025, the blockchain startup TradeOS unveiled a programmable settlement layer for international commerce, linking stablecoin payments to real-world events, thereby facilitating automated and conditional transactions in trade processes.
