Diem is selling its technology assets for $200 million to Silvergate Capital, a bank based in California. The crypto project backed by Meta (formerly Facebook) met a lot of backlash upon inception and is now leaving control of the world’s largest social media platform.
Last year, Silvergate reached an agreement with Diem to partner on launching a stablecoin pegged to the US dollar. The initiative would be a user-friendly revival of a project first called “Libra” back in 2019. However, the stablecoin never took off and has remained relatively inactive since then. This was the result of several challenges, most notably from regulators. Consequently, Diem had to modify its agenda from having the backing of global fiat currencies to that of a single national currency.
Earlier this week, Bloomberg reported that Meta (formerly called Facebook) was deliberating whether to offload Diem’s assets via a sale. This was likely because the social media powerhouse wanted to return capital to its investor members. In fact, Meta had already even gone as far as enlisting the services of investment bankers to chart a plan of sale-focused action. Part of this reportedly entailed evaluating the best way for the company to sell its IP. Additionally, Meta was also hoping to successfully re-establish its engineers at other places of gainful employment.
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