The competitive advantage in stablecoins is no longer about issuance, but distribution and direct user relationships, according to Christian Catalini, co-creator of Meta's abandoned Diem token and a professor at MIT. He states that stablecoins are maturing into a commodity, becoming part of the payments infrastructure rather than a branded offering.
This shift means companies like Meta, with billions of users across its platforms, are well-positioned to capture value by owning the end-user touchpoint. This is a departure from the previous model of facilitating fiat-to-crypto and back transactions. Incumbents, including card networks and fintechs, also hold an advantage due to their existing direct user relationships. Catalini suggests that the focus will move to the underlying payment rails, as stablecoin assets themselves are likely to become commoditized. Meanwhile, payment giants like Stripe are making significant moves in the stablecoin space, acquiring specialists and developing their own blockchain infrastructure.