The Diem Association has just announced the sale of the intellectual property and other assets related to the management of the Meta (formerly Facebook) backed crypto project Diem to Silvergate Capital Corporation. Diem Networks US CEO Stuart Levey said in a press release:
"From the outset, the Diem project has been focused on leveraging the benefits of blockchain technology to design a better and more inclusive payment system. We actively sought feedback from governments and regulators around the world, and the project evolved substantially and improved as a result. In the United States, a senior regulator informed us that Diem was the best-designed stablecoin project the US Government had seen."
The financial terms of the deal have not been disclosed. Earlier it has been reported the parties had agreed on an amount of $200 million.
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Representatives of the Diem Association have stressed that during the development and testing of Diem, controls were put in place, including a ban on anonymous transactions.
According to the statement, the team has actively communicated with the regulatory authorities, however, it became clear from the dialogue that the project could not move forward:
"As a result, the best path forward was to sell the Diem Group's assets, as we have done today to Silvergate."
The consortium has expressed its hope that Silvergate will continue to develop the payment network.