- Meta is reportedly exploring re-entry into the stablecoin market to facilitate digital payouts for creators.
- The company is engaging with various stablecoin issuers instead of developing its own digital currency.
- This move could help Meta diversify income sources and unlock new payment opportunities for its global user base.
Meta is considering a return to the stablecoin sector, aiming to use digital currencies for payments to content creators, according to a report from USDC-circle-diem-libra/”>Fortune. The discussions focus on working with current stablecoin providers, rather than attempting to build and launch a proprietary stablecoin.
The company previously managed the Diem project—initially known as Libra—which drew concerns from global central banks and was ultimately closed down by late 2021. Now, sources indicate Meta is talking with several stablecoin firms about potential partnerships rather than developing its own blockchain or digital currency platform.
Meta recently (re-)hired Ginger Baker as Vice President of Product, assigning her to this renewed initiative, as reported by Fortune. Baker, whose background includes leadership positions at payments companies like Plaid, Ripple, Square, and VISA, is currently also a Board Member at Stellar Development Foundation.
When Meta was involved with Diem, it controlled several key aspects of the project, including the underlying blockchain technology, the stablecoin’s design, digital wallets, and payment initiation systems. Industry dynamics have shifted since then—many stablecoin issuers now share reserve earnings with distributors and partners. This enables companies like Meta to offer stablecoin-based payments without building the entire infrastructure.
Some of the original incentives for Meta’s stablecoin efforts remain. Four years ago, the company managed $100 billion worth of payments annually, a number likely to have increased since then. Expanding further into payments could reduce its reliance on advertising revenue, which still accounts for 98% of its overall income.
There is also a regional strategy behind Meta’s renewed interest. Advertising yields higher returns in North America and Europe, generating two-thirds of Meta’s revenue from just 22% of its audience, according to 2023 figures. With India representing the largest user group—around 600 million people—the company may seek ways to facilitate low-cost remittances and boost revenues from international markets.
This report on Meta’s stablecoin intentions comes amid a busy week for the digital currency space. Payments firm Stripe has launched stablecoin accounts for businesses in 101 countries, while leading exchange Coinbase introduced the x402 protocol for streamlined online payments.
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