News

Meta (Nasdaq: META) is reportedly planning to introduce stablecoins as a means to manage payouts, Fortune reported on May 8.

A stablecoin is a type of cryptocurrency that is created to maintain a stable value, unlike traditionally volatile cryptocurrencies such as Bitcoin . It is usually pegged to a traditional currency like the US dollar or a commodity like gold.

Fortune reported that the tech company, well-known for its media platforms such as Facebook, Instagram, and WhatsApp, is engaged in discussions with crypto firms to launch stablecoins. The company has also hired a vice president of product with crypto experience to steer the discussions.

Meta is mulling the use of stablecoins in order to pay individuals across different regions without the need to pay the high fees associated with other forms of payments, such as wire transfers.

This isn't the first time that Meta is exploring crypto payments. In 2019, it founded Libra Networks to develop its own stablecoin for use on Facebook, Instagram, etc.

The project was later renamed to Diem in December 2020 before it closed down in January 2022. The firm sold Diem’s assets to the Silvergate Bank.

The crypto-friendly bank ceased its operations in March 2023.

As of now, the stablecoin market is worth $245.5 billion, and several prominent traditional finance (TradFi) giants are eyeing the market.

Fidelity Investments , PayPal , and President Donald Trump -backed World Liberty Financial have launched or have been planning to launch stablecoins.

One of the Magnificent Seven stocks, META rose 2% to $609.95 following the announcement on May 8. It was exchanging hands at $597.50 at press time.