Facebook Leaves Diem Behind And Seeks Third-party Stablecoins

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Novi Financial, which is behind the Diem project, is exploring partnerships with third-party stablecoin issuers, The Block has reported.

The Libra project was announced by Facebook in mid-June 2019. It was a global stablecoin backed by a basket of currencies as well as other assets that was supposed to be run by non-profit Libra Association.

However, the project received the pressure from regulators all over the world, which resulted in many members leaving the association, including Visa and Mastercard.

A bit later, in April 2020, the association abandoned the original concept and decided to issue multiple assets pegged to a different fiat currency. Then, in May, FB renamed its digital stablecoin wallet from Calibra to Novi.

Diem Association and Silvergate Bank reached in 2021 an agreement according to which the latter would issue the USD-pegged Diem.

According to the block, Novi Financial is now in talks with stablecoin issuers Circle and Paxos.