In 2019, when Meta's Facebook first unveiled the idea of its stable digital currencies — stablecoins — aimed at revolutionizing global financial services, they did so in collaboration with dozens of other companies. But the consortium wasn't enough to protect the project from worldwide regulatory scrutiny. After Zuckerberg was called to testify, some partners abandoned the project and it changed its name to Diem. Diem's ambitions scaled back and its founder, David Marcus, left Meta last year. The association struck an arrangement with Silvergate Capital Corp. to issue Diem, but resistance from the U.S. Federal Reserve dealt the effort a final blow, the people said.