Diem Confirms Shut down as Silvergate Acquires the Stablecoin Project

Silvergate Bank confirmed Monday that it’s purchasing the technology, IP, and other assets from Diem Association, the stablecoin project from Meta Platforms (formerly Facebook) for $132 million in stock and $50 million in cash. In an official announcement, Diem Association stated that it will “begin the process of winding down” its plans to launch a stablecoin following the sale to the crypto-focused, California-based bank Silveragte. “We remain confident in the potential for a stablecoin operating on a blockchain designed like Diem’s to deliver the benefits that motivated the Diem Association from the beginning. With today’s sale, Silvergate will be well-placed to take this vision forward,” Diem Networks CEO Stuart Levey said. Earlier last year, Silvergate partnered with the Diem Association to launch a dollar-backed stablecoin. Under the terms of that arrangement, Silvergate would both manage the reserves and issue the stablecoin itself. However, the planned pilot program was reportedly scrapped due to resistance from federal banking regulators. 1/7 From the statement by the CEO Stuart Levey on the sale of the Diem group's assets to Silvergate — “From the outset, the Diem project has been focused on leveraging the benefits of blockchain technology to design a better and more inclusive payment system. pic.twitter.com/fX9ptwDt0k — Diem Association (@DiemAssociation) January 31, 2022 Facebook’s Failed Crypto Venture Originally ...