Meta Plans Stablecoin Comeback
Meta is planning a stablecoin comeback in the second half of 2024, sending out RFPs to third-party firms with Stripe mentioned as a likely candidate. This marks a major pivot after the company's failed Libra/Diem initiative in 2019, with potential distribution through Facebook, Instagram, and WhatsApp. The move comes as Tether invested $200 million in digital marketplace Whop to drive stablecoin payments globally across Latin America, Europe, and Asia Pacific.
- Meta's original stablecoin project, Libra, was announced in 2019 but faced immediate and intense regulatory backlash globally over concerns about monetary sovereignty, financial stability, and data privacy. The project was later rebranded to Diem in an effort to appear more independent from Facebook, but it was ultimately shut down in January 2022. - The assets of the Diem Association were sold to Silvergate Bank for approximately $182 million. This included the intellectual property and technology for running the blockchain-based payment network. - A number of high-profile initial backers of the Libra Association, including Visa, Mastercard, PayPal, eBay, and Stripe, withdrew from the project in October 2019 due to mounting regulatory pressure. The departure of these major payment processors was a significant blow to the project's viability. - David Marcus, a former PayPal president, was the co-creator of Libra/Diem and led Meta's crypto efforts. He has since left Meta and founded Lightspark, a company focused on building infrastructure for the Bitcoin Lightning Network. - The current U.S. regulatory landscape for stablecoins has been significantly shaped by the "GENIUS Act," which was signed into law in July 2025. This legislation requires stablecoin issuers to hold 1:1 reserves and comply with banking regulations, creating a clearer framework than what existed during the Libra/Diem era. - Stripe has been actively expanding its stablecoin payment infrastructure. In early 2024, the company announced renewed support for crypto payments and has since acquired stablecoin-focused firms Bridge and Privy. It also launched its own blockchain, Tempo, designed for high-volume stablecoin transactions. - Tether's investment in Whop is part of a broader strategy to embed stablecoins into the creator economy. The partnership will allow Whop's 18.4 million users to use Tether's stablecoins for payments on the platform, which facilitates the sale of digital products like software and online courses.
