Diem, a cryptocurrency project led by Meta, will be sold for $200 million.

According to reports, Silvergate will pay for the offloading of Diem‘s crypto technology by the Facebook-led Diem group.

Metas’ brief journey into cryptocurrency is coming to an end. According to a Wall Street Journal article, the blockchain and crypto infrastructure of the Facebook-led Diem Association is being transferred to a Californian bank for roughly $200 million.

According to Bloomberg, the bank, Silvergate Capital Corp, had previously negotiated an agreement with Diem to issue the association’s stablecoin, but those attempts were halted by the Federal Reserve.

Silvergate Capital Corp is a holding company for its crypto-focused bank, which offers financial infrastructure and services to investors in digital assets.

The move is seen as a way for the company to restore funds to its investors . According to the sources, Meta controls around one-third of the association. The remaining two-thirds are owned by a partnership of the association’s members.

The Diem project, originally known as Libra, was criticized and chastised from the start for its aspirations to provide a stablecoin — a crypto asset often tethered to a commodity or fiat money — to billions of consumers throughout the world.

The grandiose initiative was announced by Meta in June 2019, much to the anger of US regulators and legislators. The group was created with payments giant PayPal, Stripe, and Visa, as well as a long list of some of the world’s most powerful corporations.

Concerns were raised in Washington a month later when Facebook CEO Mark Zuckerberg was required to explain to Congress how the program would not jeopardize global finance. Development halted as a result of funding cuts to the project, as well as the Meta-owned Novi crypto wallet and governmental pressure.

Meanwhile, David Marcus, who managed Libra from its beginnings as well as the creation of Novi, resigned from Facebook in December, claiming a desire to pursue personal projects.

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Patrick

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