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Media: Silvergate Capital to buy Diem project from Meta for $200 million

Media: Silvergate Capital to buy Diem project from Meta for $200 million

California-based bank Silvergate Capital has agreed to acquire the assets of Meta-backed steiblockchain project Diem (formerly Libra) for $200 million. The WSJ reports that.

In May, the Diem Association entered into an agreement to issue Diem with Silvergate Capital, which was to be the issuer of the steiblocoin pegged to the U.S. dollar. However, the financial institution did not receive approval from the U.S. Federal Reserve.

Facebook's (now Meta) plans to issue its own cryptocurrency became known in 2018.

In June 2019, the project of the basket-currency-backed stabelcoin Libra was officially announced with the publication of a white paper. At the same time, Facebook introduced the Calibra wallet. Earlier, the corporation's division of the same name was headed by former Coinbase board member and Facebook vice president David Marcus.

Facebook created Libra Association, a nonprofit organization to manage the payment network. Visa, Mastercard, PayPal, Uber, Spotify, Andreessen Horowitz, Coinbase and other well-known companies were among its members.

The cryptocurrency project from Facebook has concerned regulators, and in July a hearing on it was held in the U.S. Senate Banking Committee;

In October it became known that the payment firms Visa, Mastercard, PayPal and Stripe were in no hurry to sign official documents on participation in Libra Association due to regulatory problems. Subsequently, they withdrew from the project.

In May 2020, Facebook rebranded the wallet for Libra from Calibra to Novi and created a new operator for it. In December, the consortium behind the project changed its name to Diem Association.

Despite repeated announcements, the launch of the Diem coin never happened.

In December 2021, David Marcus, head of Meta's payment division, announced that he was leaving the company.

As a reminder, the Diem Association is supposedly considering selling intellectual property and other assets to "return capital to member investors."

The consortium is also looking for new jobs for the development engineers.

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