TLDR:
- Meta is exploring stablecoins like USDT and USDC for creator payouts on platforms like Instagram
- This marks Meta’s return to crypto three years after shutting down its Diem (formerly Libra) project
- Meta’s VP of Product Ginger Baker, who has fintech and crypto experience, is leading the initiative
- The stablecoin market cap exceeds $230 billion with growing institutional adoption
- Meta aims to reduce transaction fees for global payments, potentially using multiple stablecoins
Meta, led by Mark Zuckerberg, is planning a strategic re-entry into the cryptocurrency sector with a focus on stablecoin-based payment solutions. According to recent reports, the tech giant is in early talks with several crypto infrastructure firms to explore using stablecoins for managing payouts across its platforms, particularly for creators on Instagram.
This move comes three years after Meta abandoned its earlier blockchain project, Diem (originally called Libra), which faced intense regulatory pushback. The company has not made a final decision but appears to be considering a multi-token approach using popular stablecoins such as Tether’s USDT and Circle’s USDC.
Meta’s interest in stablecoins stems from their potential to enable cost-effective cross-border transfers. This would allow the company to send small payments to creators globally while avoiding the high transaction fees associated with traditional banking systems. These payments could be as low as $100 per transaction, which is common for digital creators.
Ginger Baker, who joined Meta in January as Vice President of Product, is spearheading these discussions. She brings valuable experience from her previous roles at fintech company Plaid and her board position at the Stellar Development Foundation, a crypto company that manages a layer-1 blockchain.
Growing Institutional Interest
The stablecoin market has seen massive growth in recent years, with its total market capitalization now exceeding $230 billion. This growth reflects increasing institutional confidence in these digital assets, which are typically pegged to fiat currencies like the U.S. dollar.
Meta is not alone in exploring stablecoin integration. Several major financial players have recently made moves in this space. Stripe, a global payments company, launched stablecoin-based accounts in more than 100 countries. Visa has invested in stablecoin startup BVNK and partnered with infrastructure provider Bridge.
Fidelity is developing its own stablecoin, while other financial firms are either creating stablecoins or entering the market. Standard Chartered has projected that the stablecoin market could grow by $2 trillion by 2028, highlighting the potential of this technology.
The renewed interest in stablecoins comes amid changing political landscapes. The Biden administration’s policies had limited mainstream stablecoin adoption, but the election of Donald Trump in November 2024, along with Stripe’s $1.1 billion acquisition of stablecoin startup Bridge, has spurred their use in the broader financial world.
Meta’s approach to stablecoins appears more cautious than its previous Diem project. One executive from a crypto firm described Meta as being in a “learn mode” and open to using more than one type of stablecoin, potentially varying by region or use case.
Regulatory Landscape
Despite growing industry momentum, the regulatory framework for stablecoins in the U.S. remains uncertain. On May 8, a vote on the GENIUS Stablecoin bill failed in the Senate after Democrats withdrew their support. Treasury Secretary Scott Bessent described this as a missed opportunity to advance the dollar’s role in digital finance.
Meanwhile, World Liberty Financial, a firm linked to U.S. President Donald Trump, launched its own stablecoin called USD1 in March. By May, USD1 had already risen to fifth place in global stablecoin market capitalization, highlighting the rapid growth potential for new entrants in this sector.
At a recent Stripe conference, Zuckerberg acknowledged Diem’s failure during an on-stage discussion with Stripe cofounder John Collison, stating plainly: “That thing’s dead.” When asked about Meta’s tendency to be early to tech trends, Zuckerberg added: “There’s plenty of things that we’re late to and have to claw our way back into the game, which I think we’re pretty good at that, too.”
Meta has declined requests for official statements about its latest crypto plans. However, the company’s new hires and early talks with crypto firms suggest a renewed effort to use blockchain-based assets for digital payments, focusing on practical applications rather than creating a new cryptocurrency.
Sources familiar with the matter indicate that Meta’s discussions remain at a preliminary stage. The company appears to be weighing the benefits of stablecoins against other payment methods, with particular attention to reducing fees for small transactions across different markets.
The stablecoin exploration represents Meta’s latest attempt to expand its financial services offerings, potentially creating new revenue streams while enhancing the platform experience for creators and users worldwide.
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