- Meta revives stablecoin plans after Diem shutdown and Silvergate asset sale.
- Regulatory pushback led to Diem’s $182M sale and Silvergate’s collapse in 2023.
- Meta explores USDC, USDt for cross-border payments amid growing institutional adoption.
Meta is exploring stablecoin payments again for its platforms, nearly three years after regulators halted Meta’s Diem digital currency project. The revived discussions come as institutional interest in stablecoins rises and U.S. regulatory conditions shift under the Trump administration.
Launched in 2019 as Libra and later renamed Diem, the project aimed to create a blockchain-based payment network to improve financial inclusion.
Diem’s Ambitious Past, Regulatory Blockade
Backed by Meta, the Diem Association developed a stablecoin with strict controls, including a ban on anonymous transactions. CEO Stuart Levey noted that the team applied compliance measures “novel in the industry” and even received praise from U.S. regulators for the project’s design.
Despite these efforts, Meta encountered ongoing resistance from federal regulators, including the FDIC. The pressure led to the sale of Diem’s intellectual property and technical assets to Silvergate Capital for $182 million in January 2022. Silvergate planned to use the acquired technology to issue its stablecoin.
Related: Silvergate Collapse: Did Warren and Biden Push the Bank to Fail?
Silvergate’s Shadow and Unanswered Questions
Silvergate’s strategy, however, faced scrutiny after its 2023 collapse. Crypto analyst MartyParty has since claimed Meta was “forced” to abandon Diem, suggesting the Silvergate deal contributed to the bank’s failure and raising questions about regulatory pressures.
Meta Quietly Re-Engages Stablecoin Providers
Now, Meta is reportedly re-entering the stablecoin arena. A Fortune report indicates the company is actively consulting with crypto infrastructure firms about integrating stablecoin payments. Sources suggest Meta is considering a multi-token approach, potentially including Circle’s USDC and Tether’s USDt, though no final decisions are public.
Meta is also reportedly considering stablecoins to improve the efficiency of cross-border payments. Meta has appointed former Ripple executive Ginger Baker as vice president of product, and is said to be in talks with blockchain companies to address fee-related issues.
Related: 2025 Could Be Stablecoins’ Breakout Year as Adoption Hits Every Level
The move reflects a broader industry trend. On May 7, Stripe launched stablecoin-based accounts in over 100 countries, while Visa announced an investment in stablecoin startup BVNK. Stablecoin market capitalization has since grown to over $230 billion.
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