Why the next phase of stablecoin payments is all about user relationships and distribution
The competitive advantage in stablecoins has shifted from issuance to user distribution, favoring incumbents with large user bases.Summary
Christian Catalini, co-creator of Meta's former Diem project, argues that the stablecoin market is maturing, with issuance and payment orchestration becoming commoditized services used by major tech firms like Meta, Google, and Apple.
The new competitive advantage, or 'moat,' in stablecoin payments is no longer about the token itself but about distribution—owning the direct relationship with the end user. Meta, with billions of users across its platforms, is positioned to capture significant value, marking a shift away from the complex 'stablecoin sandwich' process of fiat-to-crypto-to-fiat conversion.
This trend benefits incumbents like card networks, fintechs, and neobanks that already own the user touchpoint. While stablecoin payments threaten interchange fees, established networks can defend their business by commoditizing the underlying assets and focusing on the payment rails. Catalini also expressed skepticism about large payment providers building on proprietary blockchains like Stripe's Tempo, emphasizing the need for truly open and neutral networks.
(Source：CoinDesk)