Facebook Seeks Help From Paxos And Coinbase For Its Novi Wallet

Facebook seeks help from both Coinbase and Paxos for its crypto wallet Novi as now people in the US and Guatemala can purchase these Paxos Dollars through a pilot version of the Novi wallet so let’s read more in our latest crypto news today.

Coinbase announced that it will provide custody services for Novi’s pilot program which is Facebook’s new digital wallet subsidiary. The pilot went live in Guatemala and the US and users can find it on Apple stores and Google Play. While there wasn’t any mention of Diem, Facebook’s cryptocurrency, the pilot users will be able to start trading the Paxos Dollar through their Novi accounts. Paxos wrote in their blog:

 “This news represents a tide shift in digital assets, as it’s the first time that stablecoins are readily available in a consumer wallet outside of the crypto ecosystem.”

The Paxos dollar purchased on Novi is being held on deposit through Coinbase Custody so all users can then send money across the world and do it fast with no fees. Facebook first announced that it will be branching into the crypto services with the digital wallet and its stablecoin called Libra. Today’s launch brought the wallet in an embryonic form so what is happening with the Diem stablecoin? Two years ago, Libra was promoted as a “borderless global currency” backed by the Libra Reserve to which a spokesman defined it as a collection of low volatility assets such as bank deposits and government securities in currencies from central banks.

That’s why Facebook seeks help from Coinbase and Paxos despite the Libra Association losing eight members including financial titans Mastercard, eBay, and PayPal. The currency underwent a name change to Diem it will be pegged to the US dollar such as USD Coin and Tether but there’s no launch in sight. Despite Diem’s absence, the Facebook press release confirmed that the project is oncoming stating:

 “Our support for Diem has not changed… We intend to migrate Novi to the Diem payment network once it receives regulatory approval.”

As recently reported, Andreessen Horowitz hired engineers for its a16z crypto division. The venture capital firm is a founding member of the organization behind the Facebook Diem crypto project and made sure that there will be something good coming out of that investment that hasn’t brought any result so far. The two lead engineers for Facebook’s Novi Wallet will be used to hold a dollar-based stablecoin that is issued by the Diem association which Facebook created and they are now moving into senior roles at a16z Crypto as per the blog post from today.