Diem Will Sell Assets To Silvergate For $200 Million: Report

Diem will sell assets to Silvergate for $200 million which means that Facebook’s stablecoin project will wind down as we are reading more in today’s latest crypto news.

The Diem Association will sell off its asset and an IP to Silvergate for about $200 million. Facebook launched the stablecoin project in 2019 as Libra. Facebook’s stable coin ambitions are slowly dying after the latest report that Diem will sell assets to Silvergate Capital for $200 million. According to the reports that cite unnamed person familiar with the situation, the Diem Association will wind down the plans to launch a stable coin following the sale to the crypto-focused California-bank Silvergate Capital that was announced as the issuer of the stablecoin but this plan never actually became real.

The report signals an end to Facebook’s ambitions in the crypto space. Facebook initially launched the Libra Association in 2019 along with other tech companies with more plans to launch a crypto stablecoin backed by a basket of other global currencies. The pushback came swiftly because regulators questioned Facebook’s ambitions and approach. Partners like Visa, eBay, Stripe, and PayPal all bailed in late 2019 but Facebook continued ahead and rebranded its efforts to Diem and shifted the approach to a dollar-backed stablecoin.

The status of the project became unclear in the past few months as updates were fewer and fewer which culminated when founder David Marcus departed the association in 2021. While the reported sale has to be announced officially, Bloomberg noted that the Diem Association was looking to sell and to bow out as a way to return capital to the investors.

As we reported recently, Facebook’s Diem has been flailing for more than two years now and the association behind the stablecoins is considering throwing in the towel. The Diem Association is now looking for ways to sell its assets and the stablecoin project weathered regulatory scrutiny as well as executive departures. DIEM tried selling assets but this could also mean that it is giving up on its stablecoin plans. The association led by Facebook and other venture capitalist is now contemplating selling off its intellectual property and other assets as a way to return capital to the investor members.