The blockchain company Diem Association, the Meta Platforms-led firm that was trying to issue a new easy-to-use stablecoin, is said to be trying to sell its technology for $ 200 million to Silvergate Capital, a US bank that had already accepted. last year to partner with Diem to launch a US dollar-pegged stablecoin. The deal was supposed to throw fresh air into a troubled project, which Meta Platforms had started under the name of Libra in 2019 when the company was still called Facebook. Diem was in talks with investment bankers to sell his intellectual property to return money to investors, Bloomberg reported on Tuesday, citing unnamed sources. Like Libra, the project originally involved a stablecoin backed by a basket of fiat currencies that could be used around the world as a medium of exchange. But it immediately spurred international regulatory backlash, with lawmakers calling for all development to cease until they can provide some regulatory guidance and ensure it doesn't threaten financial stability.
In December 2020, the Libra Association rebranded Diem to try a different approach, but the initiative continued to face headwinds, including the farewell of key executives. Diem Networks U.S., a unit of the association, would operate the Diem Payments Network and register as a money services firm with the Financial Crimes Enforcement Network (FinCEN), while Silvergate would be the formal issuer of the stablecoin diem USD and manage the reserve at token support. But the Federal Reserve expressed concern about this plan and did not guarantee it would give its approval. Lawmakers also dismissed Novi (formerly Calibra), a Meta subsidiary focused on building a portfolio that would be compatible with Diem, announced a pilot program in partnership with Paxos last fall.STABLE 200 ARTICLE