Meta (formerly Facebook)-backed Diem Association is conducting negotiations to sell assets and transfer capital to investors, Bloomberg has reported.
According to sources, the group is contacting investment banks in an attempt to divest itself of its intellectual property and is looking for new locations for developers. However, there is no guarantee Diem will be able to find a buyer.
A source has told Fortune Meta owns one-third of Diem, while the remainder is held by several tech companies and venture capitalists. Diem's website states the partners in the venture include Andreessen Horowitz, Union Square Ventures, Ribbit Capital, Thrive Capital and Temasek Holdings Pte.
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Meta planned to launch a stablecoin during the first half of 2020, however, the company abandoned its plans due to pressure from regulators. In the same year, Meta changed the name of the project from Libra to Diem. The company explained it made this decision due to the negative feedback it received on the first version.
Libra was originally supposed to be backed by multiple currencies, but regulators opposed the idea. Later it was decided to peg the Diem token to the US dollar, however, this decision did not find support from the regulatory authorities either.
The Fed's intervention also disrupted the company’s plans to partner with crypto-friendly Silvergate Bank last year, and Meta's head of crypto initiatives, David Markus, left the company in November.