Meta to sell stablecoin project Diem

Meta is set to sell its stablecoin project - The Diem Association - to Silvergate Capital, according to sources reported by The Wall Street Journal.

The deal, which includes the venture’s technology, was worth around $200 million according to the publication’s sources.

Stablecoins are cryptocurrencies where the price is designed to be anchored to fiat money - for example, the US dollar - or to exchange-traded commodities such as gold.

The news comes after the BigTech first partnered with the San Diego-based bank, which serves mainly blockchain and cryptocurrency companies, in May 2021.

The Diem Association - initially known as Libra - was founded in 2019 and was backed by 25 businesses and non-profit groups.

However, the project received regulatory criticism from its onset.

In November 2020, leaders of the G7 group of nations opposed the launch of Facebook’s Libra stablecoin until it could confirm it was properly regulated.

Diem had initially planned to launch its own currency based on a selection of major currencies and government debt, but then transitioned its aims towards providing a dollar-backed stablecoin called Diem USD.

Meta is still pursuing ambitions in the cryptocurrency space, and recently partnered with Coinbase to help with logistics for Novi, its new digital wallet for cryptocurrencies.

FStech has contacted Meta for comment.

The wallet, which is currently being piloted in the US and Guatemala, allows users to send ‘SDP’, a stablecoin tied to the US dollar created by tech firm Paxos.

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