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The Facebook-led Diem cryptocurrency project is preparing to sell its assets, while the media giant admits to succumbing to its long-standing ambition for digital recovery.
Diem Association, which was launched by Facebook in 2019 and is supported by 25 businesses and nonprofits, planning to end, according to a number of people familiar with the negotiations.
One person said the buyer of his expertise was Silvergate Bank of California, for $ 200m. This was first reported by the Wall Street Journal. Diem and Silvergate declined to comment. Facebook, which recently named its parent company Meta, did not respond to a request for comment.
Meta has been looking for sources of revenue to boost its future growth. The Silicon Valley group has been plagued by recent cyberbullying and secrecy, which has led to the proliferation of its major Facebook and Instagram network, threatening its $ 85bn-a-year advertising campaign.
The sale should give Diem the opportunity to donate money to the founders of the project, who previously donated $ 10m to participate.
The a demolition project faced with a push back from the directors from the beginning. It started out as a team with its founding members – including PayPal, Mastercard and Vodafone – to leave within its first year the project will attract the attention of the management.
In particular, supervisors raised anxiety about money laundering and financial stability, based on the size of Facebook. The company also faced controversy over Cambridge Analytica privacy.
Formerly known as Libra, Diem originally wanted to make digital money with the help of a real money basket. But in order to please US authorities, it did reduced his vision in 2020 to focus on establishing a single dollar-backed fund, known as stablecoin, and hiring former HSBC attorney general Stuart Levey as their first major.
In another final attempt to win the accreditation in May, that changing its functions from Switzerland to the US and announced that Silvergate would be the only one that would donate all of its stablecoin money and manage its reserves.
However, the project still failed to get the green light from US officials and David Marcus, the founder of the project, left on Facebook at the end of last year.
Once completed, the sale of Silvergate could bring Facebook’s biggest financial impact in the long run.
The company created Novi, a digital wallet, to keep Diem’s money. However, Novi was introduced as a minor driver in October using funds from an external donor, Paxos Dollar.
Meta seems to have shifted its focus from its crypto-related goals, to operations that would allow users to buy and sell non-fungible tokens – digital assets built on blockchain.
People familiar with the plans said the Novi wallet was also crucial to the idea of entering the NFTs, well known. went up last year becoming a $ 40bn global market.
Additional reports from Leila Abboud in Paris and Kiran Stacey in Washington DC
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