Meta sells Diem stablecoin project for $182M

The intellectual property and assets of Meta (previously Facebook)-backed stablecoin project Diem have been sold to cryptocurrency bank Silvergate Capital Corporation for $182 million, both companies stated on Monday.

Meta sold Diem stablecoin
Diem stablecoin | Image: Optimisus

Both firms stated on Monday that they had sold to crypto bank Silvergate Capital Corporation for $182 million.

"We noticed a need for a regulated and highly scalable US dollar-backed stablecoin to further enable people to move money without boundaries," Silvergate CEO Alan Lane stated.

"It is still our plan to meet that demand in 2022 by introducing a stablecoin based on the assets we bought today and our existing technology."

In exchange for the acquisition, Silvergate issued about $132 million in Class A common stock and an additional $50 million in cash.

Regulators pushed back after the Diem project was renamed Libra in 2019, while discussions about central bank digital currency (CBDC) advanced.

As the Diem Association shifted its principal activities from Switzerland to the United States last year, Silvergate Bank, a California chartered Federal Reserve member bank, became the exclusive issuer of Diem's USD stablecoin.

The President's Working Group on Stablecoins recommended that they be issued by "insured depository institutions," or banks, in November.