- Meta revisits stablecoin use for low-cost global creator payouts.
- Broader corporate adoption follows Trump’s stablecoin-friendly policies.
- Regulatory clarity drives renewed industry interest in digital currencies.
Meta is revisiting stablecoins three years after canceling its significant crypto venture due to regulatory pressure. According to five anonymous sources cited by Fortune, Meta is currently discussing stablecoin integration with crypto firms. These digital assets, typically pegged to the U.S. dollar, are favored for cross-border transactions and lower fees compared to traditional banking.
Meta’s Return to Cryptocurrency
In 2019, Meta had originally planned out a huge rollout of the cryptocurrency known as Libra which had also involved collaboration with Uber and PayPal. The project was halted in early 2022 when regulatory pressure forced Diem closure, earlier referred to as the project.
Diem’s assets were sold to Silvergate Bank, known for supporting crypto businesses. Meta CEO Mark Zuckerberg publicly acknowledged the project’s failure recently at a Stripe conference, describing it simply as ‘dead’. Currently, Meta has hired Ginger Baker as Vice President of Product, specializing in fintech and payments.
Baker previously held an executive role at fintech firm Plaid. She also serves on the board of the Stellar Development Foundation, overseeing a blockchain used in international payments. Baker leads Meta’s stablecoin discussions, aiming to streamline payment systems, particularly for cross-border use.
Integration Plans for Payments
Meta approached multiple crypto infrastructure providers earlier this year, investigating stablecoins for international transactions. Unlike traditional bank transfers, stablecoin payments significantly reduce fees. Sources noted that Instagram could use stablecoins for small payouts, around $100, benefiting creators globally by cutting transaction costs.
Executives familiar with Meta’s plans described the company as exploring multiple stablecoin options rather than choosing a single provider. Meta aims to remain flexible, potentially supporting various stablecoins to maximize efficiency and adaptability across its platforms.
Broader Industry Adoption
Stablecoin adoption is rising, spurred by President Donald Trump’s administration and recent corporate actions. The payment company Stripe acquired Bridge, a stablecoin startup, for $1.1 billion, signaling mainstream acceptance. Visa partnered with Bridge to enhance payment infrastructure, while Fidelity recently announced its own stablecoin initiative.
Circle, another stablecoin issuer, hired Matt Cavin from blockchain gaming firm Immutable to develop partnerships with major tech companies, including Meta. Cavin manages ‘tier-1 strategic partnerships’, indicating Circle’s intent to engage deeply with influential firms exploring crypto integration.
With its new crypto efforts in line with congressional discussions on stablecoins’ reregulation, Meta’s efforts are gaining clarity after a drawn-out period of uncertainty. The company’s decision to go back to stablecoins follows the other financial industry trends of considering digital assets for efficiency and cost-effectiveness.
