Meta re-enters stablecoin, the advantage lies in distribution rights

The wave of stablecoins is heating up again as more organizations issue tokens pegged to real assets, mainly USD, despite the crypto market cooling off from its October peak.

This week, the AllUnity joint venture in Germany between DWS, Galaxy, and Flow Traders launched a stablecoin pegged to the Swiss franc (CHFAU). In Asia, SBI Holdings and Startale Group introduced a yen-pegged stablecoin (JPYSC). Previously, Agant announced it is developing a British pound stablecoin, and Hong Kong is expected to start licensing stablecoins from March.

Notably, Meta, led by Mark Zuckerberg, is reportedly planning to integrate stablecoin payments in the first half of this year. Meta previously failed with the Libra project (later renamed Diem) in 2019 due to strong opposition from regulators and lawmakers.

However, according to Christian Catalini — co-founder of Libra, now a professor at MIT and founder of the MIT Cryptoeconomics Lab — the current landscape has changed. Stablecoins are gradually becoming part of the payment infrastructure, provided by multiple parties and becoming more “commoditized,” rather than tied to a single brand.

Catalini believes that not only Meta but also Google and Apple could use multiple stablecoin providers, similar to how they handle payments today. This indicates the market has matured, with stablecoins becoming a foundational tool rather than a symbolic product.

This view is also emphasized by Andy Stone, Meta’s Vice President of Communications, who stated that the goal is simply to enable users and businesses to make payments on the platform using their preferred methods.

According to Catalini, the biggest competitive advantage in the stablecoin era no longer lies in token issuance or coordinating payments across blockchains, but in owning distribution channels and maintaining direct relationships with end users.

Meta currently has nearly 3.6 billion users across Facebook, WhatsApp, and Instagram, according to recent financial reports — a massive distribution advantage.

This shift marks a significant change from the previous “stablecoin sandwich” model, where value was created through conversions from fiat to crypto and back to fiat.

Recent developments also show some companies abandoning plans to acquire stablecoin orchestration firms, reflecting a trend toward “commoditizing” issuance and payment infrastructure.

This could benefit traditional card networks and fintech companies like Visa and Mastercard — entities that have direct touchpoints with users. While stablecoins could threaten fee revenue, their distribution advantage remains a key “economic moat.”

Catalini argues that “commoditizing” stablecoins is inevitable as more banks and organizations want to issue their own tokens. As assets become more widespread, competition will shift toward payment infrastructure (rails) and user access.

In this race, Stripe — a long-time payment partner of Meta — is also present. Stripe previously spent $1.1 billion to acquire stablecoin-focused company Bridge and has built its own blockchain called Tempo.

However, Catalini questions whether competitors are willing to build on a blockchain controlled by a rival company. He believes the biggest challenge is ensuring the openness and neutrality of the network — core principles of crypto.

He suggests that building on established networks like Ethereum, Bitcoin, or Solana might be a more practical long-term option.