Crypto project Diem sells its assets to the bank for $ 200 million2 min read
According to the Wall Street Journal, the California bank Silvergate Capital has decided to buy the technological assets of the Meta-backed project Diem for $ 200 million.
Diem sells its assets for $ 200 million
Last year, the bank agreed to partner with Diem to launch a USD-linked stablecoin. It was supposed to revive a project conceived in 2019 as Libra, when Meta was still called Facebook. However, Stablecoin was never launched.
It has previously been announced that Meta is considering selling Diem’s assets, but has returned the capital to its investors. The company was thinking about how best to sell its intellectual property and was trying to find a job for developers.
The project faced stiff regulatory resistance from the beginning and was forced to abandon the announced plans. Mark Zuckerberg made such a fuss that he was summoned before the US Congress. Regulators, especially in the United States, feared that a private entity with 2 billion users, specifically Facebook, could release a currency that could compete with the official currency. Too much risk to the monetary sovereignty that the United States is closely guarding.
Prominent members of the Libra Association have left the ship, including PayPal. As a result, the project turned upside down in the hope that it would finally meet the favor of the authorities. The name has changed, from Libra to Diem. Instead of stablecoin driven by a basket of world fiat currencies, the concept has been transformed into separate tokens driven by a single national currency.
Unfortunately, in August last year, a Meta subsidiary called Novi refused to cooperate with Diem and switched to another issuer of stablecoins.
The head of the project Novi and co-founder Diem, David Markus, left the company in November 2021.