Bloomberg says a controversial crypto project that Mark Zuckerberg has championed before Congress is collapsing after regulatory pressure, adding that the Diem Association, a cryptocurrency initiative formerly known as Libra backed by Meta Platforms Inc, is balancing the sale of its assets as a way to repatriate its assets. capital to its member investors.
In 2019, when Meta-affiliated Facebook first unveiled the idea of its own stablecoins - stablecoins - aimed at revolutionizing global financial services, they did so in collaboration with dozens of other companies. But the consortium was not enough to protect the project from global regulatory scrutiny. After Zuckerberg was called to testify, some of the partners abandoned the project and changed its name to Diem. Diem's ambitions waned and its founder, David Marcus, was left dead last year. The association struck an arrangement with Silvergate Capital Corp. to issue DIMM, but resistance from the US Federal Reserve dealt those efforts a fatal blow, People said.
The Diem Association said in May that one of the company's affiliates, Silvergate Bank, was to issue the US dollar diem stablecoin, a type of cryptocurrency pegged to the US dollar that is typically used to buy and sell other cryptocurrencies. After a long period of wrangling between Diem's advocates and regulators, Fed officials finally told Silvergate last summer that the agency was uncomfortable with the plan and could not reassure the bank that it would allow such activity, People said.
According to Bloomberg, Meta owns about a third of the project and the rest is owned by members of the association, according to one of the people. The person added that members of the association, which includes venture capital firms and technology firms, agreed to invest and pay to join when the group was formed. It's not clear which companies, besides Meta, ended up investing in the initiative. Diem's website explains that its partners include venture capital firms such as Andreessen Horowitz, Union Square Ventures, Ribbit Capital and Thrive Capital as well as Singapore's state-owned investor Temasek Holdings Pte. Its website also lists crypto-focused companies such as Coinbase Global Inc. , and others such as Uber Technologies Inc. and commerce platform Shopify Inc.
0 Comments