Programmable money is gaining popularity, with startups raising nearly $100 million in funding. On the same day that stablecoin market capitalization hit $280 billion, Switzerland-based M0 announced a $40 million Series B funding round, led by Polychain Capital and Ribbit Capital. M0 allows developers to create custom stablecoins and has partnered with platforms like MetaMask and Playtron.

US startup Rain also announced a $58 million Series B raise led by Sapphire Ventures, bringing its total funding to $88.5 million. Rain is creating tools for banks to issue regulated stablecoins. These funding announcements reflect a growing interest in “programmable money,” a type of digital currency with specific built-in rules for how it can be used, enforced by blockchains and smart contracts.

While all stablecoins can be programmable, most serve as simple payment tokens. M0 and Rain distinguish themselves by integrating programmability directly into their designs. M0 enables the issuance of stablecoins with specific rules regarding liquidity and usage, while Rain facilitates real-time payrolls across various jurisdictions and supports multiple blockchain networks.

Programmable money is a concept that has been developing over time. For example, Kazakhstan launched a pilot program for its digital tenge, which included programmable tokens to ensure payments were made only after certain milestones were achieved. Additionally, the National Bank of Kazakhstan demonstrated that VAT refunds could be processed much faster using programmable money.

In India, the digital rupee pilot expanded its features to enhance programmability and accessibility. However, the use of programmable money by governments has faced criticism, as some view central bank digital currencies (CBDCs) as potentially harmful.

Private sector projects are also exploring programmable money. Circle introduced programmable wallets to automate transactions on Solana, while TradeOS launched a programmable settlement layer for global trade, linking stablecoin payouts to verified real-world events.