Meta has announced that they have given up on its stablecoin project named Diem, on which they have been working hard for the past two years. Meta that was called Facebook earlier declared the shutting off of its digital asset project Diem after making hard and constant efforts in developing this digital currency for years.
Announcing this shocking news on Monday, the CEO of Diem said that Meta is vending the assets and intellectual property that was about the Diem Stablecoin project to its Capital Corporation named Silvergate.
Levey said that Diem Association and its subordinates would begin winding down all the operations in the upcoming weeks. Moreover, Levey said that although Meta has officially terminated the project, he is pretty sure that Diem ideals will pursue to thrive.
As per the official statement by the buying company named Silvergate, the firm will buy assets worth approximately $182 million.
Mainly, Silvergate bank is a subsidiary of Silvergate, and in addition to that, it is also Meta’s stablecoin partner that will merge its payment platform with Diem’s assets. This brand new combination will assist the bank in launching a global payment system that will be easier, more cost-effective, and faster than the existing solutions.
Silvergate Future Plans after Purchasing Assets from Diem
To make the picture clear, here we will share the plans of Silvergate after buying Diem assets. So, delve into it.
Silvergate Capital CEO named Alan Lane said that the company is launching a stablecoin by the end of the ongoing year. This California-based company has confirmed that they purchased assets from the Diem group. It should be noted that earlier, Silvergate had a partnership with a project supported by Facebook named Diem.
In an interview, Lane revealed that engineers who have worked on the project for the past couple of years are world-class engineers. Furthermore, he said that we were on board with Diem last year and went to know that they have a fantastic team. He also unveiled that we are incredibly excited to take the authority and develop the stablecoin hopefully at the end of this year.
It is worth mentioning that Silvergate is among one of the First conventional banks that embrace digital assets. The Exchange Network of Silvergate provides the facility to carry out the real-time transfer, and to avail of this opportunity, you need to be an account holder. Silvergate is the parent company of crypto trading platforms like Gemini and Coinbase Global.
Lane further said that he hopes to enhance the spectrum of stablecoin’s usefulness every day. Stablecoin can be defined as a digital asset with its value pegged to conventional currencies, for instance, the GBP. Lane said that for now, they are primarily utilized in crypto.
In addition to this, Lane uttered that the potential worth is beyond expectations when using blockchain technology for remittance and payments. He also revealed that Silvergate Exchange Network is utilized by issuers of stablecoin already for creating and redeeming digital tokens.