The Diem Association (formerly known as Libra) is in talks to sell off its assets to California cryptocurrency bank Silvergate Capital Corp for $200 million, The Wall Street Journal has learned, citing anonymous sources close to the matter.
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The bank — according to the report — had earlier reached a deal with Diem to issue stablecoins. As per Bloomberg, Diem is currently trying to figure out the best way to sell its intellectual property. As a result of the deal, Meta plans to return capital back to its investor members. A spokesperson for Diem, Michael Crittenden, told The Verge that Bloomberg's report had "some factual errors" but declined to elaborate.
Meta tried to launch its own 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.
Initially, the Libra stablecoin was supposed to be backed by multiple currencies, but regulators opposed this 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.
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