After the collapse of the much-publicized Diem project, Meta is reportedly considering a comeback into the crypto space by launching its own stablecoin, according to a Fortune report citing five sources close to the matter. The tech behemoth plans to leverage stablecoins to minimize payment costs, particularly for transactions such as compensating Instagram creators.
Currently, Meta does not seem to have a specific stablecoin in focus. In a noteworthy move, the company recently recruited Ginger Baker, a former Ripple executive, as vice president of product. There are also reports of Meta reaching out to crypto infrastructure firms to explore ways of reducing fees associated with cross-border payments.
Meta’s renewed interest in integrating stablecoins coincides with a more crypto-friendly stance from U.S. regulators following President Trump’s inauguration. Tech giants, banks, and stablecoin issuers are all vying to influence the future regulatory landscape for stablecoins in the United States.
Back in 2019, Meta, then known as Facebook, initiated its foray into the world of stablecoins with the creation of the Libra division. The division aimed to support a dollar-pegged digital asset backed by a basket of fiat currencies. Unfortunately, regulatory issues hindered the plans and forced the company to abandon the project. The Libra division was subsequently renamed Diem in December 2020, in a bid to distance itself from its tarnished image.
Despite these setbacks, Meta has not completely withdrawn from the crypto arena. Over the past two years, the company has filed trademark applications for projects related to digital assets, such as crypto trading, blockchain-focused hardware, and digital asset exchange services. This move has however, sparked concerns among lawmakers, including California Democrat Maxine Waters.
As of May 8, the total supply of stablecoins stands at $232.14 billion, largely made up of Tether’s USDT and Circle’s USDC, according to data from The Block’s Data Dashboard.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
