Meta is in talks with crypto companies about the possible integration of stablecoins into its products — three years after the failure of its Diem project, Fortune Crypto reports, citing a recent announcement.
The company views stablecoins as a tool for low-cost international payments. These discussions come amid renewed interest in stablecoins among fintech giants and a softer regulatory tone following the change in U.S. leadership.
Return to the Idea of a Stable Cryptocurrency
Meta is once again considering the implementation of stablecoins, according to five individuals familiar with the company’s internal discussions. They requested anonymity, as the matter is not public. According to them, Meta is exploring how stablecoins could be used for small international payments, such as payouts to Instagram creators. Discussions are still at an early stage, but the primary interest lies in the low fees and borderless nature of such transactions.
Meta’s renewed interest reflects a broader trend: following Donald Trump’s victory in the U.S. presidential election and Stripe’s $1.1 billion acquisition of crypto firm Bridge, major players are increasingly viewing stablecoins as payment infrastructure. In the past month alone, Visa partnered with Bridge, Fidelity began developing its own stablecoin, and Stripe launched financial accounts with support for digital currencies.
In January, Ginger Baker joined Meta as Vice President of Product. Previously at Plaid and currently a board member of the Stellar Development Foundation, she is reportedly overseeing Meta’s crypto initiatives. The company declined to comment, including on Baker’s role in the matter.
Instagram May Serve as a Testing Platform
According to a senior executive at a crypto firm, discussions with Meta primarily concern the use of stablecoins for small payouts — around $100 — to content creators across different countries. Instagram is being considered as a potential testing platform. It is noted that Meta has not yet leaned toward a specific token, such as Circle’s USDC. Two other industry participants confirmed they had similar conversations with Meta regarding this use case.
Circle Joins the Conversation
Circle, the issuer of USDC, is also reportedly in talks with Meta. Representing the company in discussions is Matt Cavin, who joined Circle from blockchain gaming company Immutable and is responsible for Tier 1 partnerships. On his LinkedIn profile, Cavin does not list specific partners, but sources say he is leading communications with Meta. Circle declined to comment.
The Diem Failure and Its Legacy
Meta previously attempted to launch a stablecoin in 2019. Initially called Libra, the project was backed by companies such as Uber and PayPal. After regulatory pushback, it was renamed Diem, but was ultimately shut down in 2022, with assets sold to Silvergate Bank. At the time, Facebook failed to convince Congress of the safety and utility of its cryptocurrency.
Several former Diem employees later founded their own blockchain startups. These include Lightspark, created by former Diem head David Marcus, as well as the Aptos and Sui blockchains, which are based on the Move programming language developed within Meta.
Speaking at a Stripe conference, Meta CEO Mark Zuckerberg acknowledged that the Diem project is “dead.” However, he added that Meta is no stranger to being a latecomer and knows how to catch up. According to him, the company often acts early in promising fields, but even when it lags behind, it “knows how to get back in the game.”
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