The Diem Association, the crypto project of Meta (formerly Facebook), has announced it has sold its intellectual property and other assets to Silvergate Capital Corporation.
While the parties have not disclosed the terms of the deal, the WSJ reported last week citing anonymous sources that Meta may sell its crypto project for $200 million.
Diem has explained that throughout the process of developing its own stablecoin, they actively interacted with regulators and received positive feedback from them. Despite this, it became clear to the developers that the project could not develop further. According to the press release:
“The best way out was to sell the assets of Diem Group, which we did.”
Meta planned to release its own stablecoin in the first half of 2020, but abandoned these plans due to warnings from regulators. At the same time, the company rebranded the project, changing the name of the stablecoin from Libra to Diem due to the fact that the early version received a lot of negativity.
In 2021, Diem founder David Markus left Meta and the project entered into a partnership with Silvergate Capital Corp. to issue their own stablecoin.