Report – Regulation

Meta, formerly Facebook, is reportedly in talks with investment bankers to sell its assets in cryptocurrency project Diem, formerly Libra. The Diem USD stablecoin was supposed to be issued by Silvergate Bank but failed to receive regulatory approval.

Meta is reportedly looking for buyers for the Diem crypto project

Mark Zuckerberg's Meta, formerly Facebook, is trying to sell its assets in the cryptocurrency project Diem, formerly Libra, Bloomberg reported on Tuesday, citing people familiar with the matter.

Meta owns about a third of the company; the rest belong to other members of the Diem association, one of the people said.

The Diem Association is considering a sale of its assets to return capital to its investor members, the people said. They added that Diem is negotiating with investment bankers about selling its intellectual property and finding a new home for the project engineers.

The association announced a partnership with Silvergate Bank in May last year to make the bank the exclusive issuer of the Diem USD stablecoin.

However, people noted that the bank's regulator told Silvergate that it was unhappy with this Diem start plan and could not assure the bank that it would allow this activity.

Facebook first introduced the Libra crypto project in June 2019. Since then, it has faced relentless scrutiny from regulators worldwide, prompting some partners to do so give up the project, including Visa, Mastercard and Paypal.

Libra later changed its name to Diem. David Marcus, who led the company's Diem efforts, resigned at the end of 2021.

What do you think about Meta trying to sell its assets in the Diem crypto project? Let us know in the comments section below.

Kevin Helms

As a student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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