2 years ago
The Diem Association is shutting down.
Silvergate Bank confirmed Monday that it's purchasing the exertion and different assets from Diem, the stablecoin task from Meta (formerly Facebook) archetypal announced arsenic Libra successful June 2019.
In a statement Monday, the Diem Association said it would “begin the process of winding down” some the radical and its subsidiaries implicit the adjacent fewer weeks.
Silvergate announced successful a property release precocious Monday that it is acquiring Diem’s development, deployment and operations tools, arsenic good arsenic tools “for moving a blockchain-based outgo network” for remittances and different applications.
It described Diem’s enactment arsenic moving “in a pre-launch phase.” Diem has faced stiff regulatory headwinds since it was archetypal announced successful June 2019. Rumors that Diem was looking to merchantability its assets to repay investors person been swirling since past week.
Silvergate said it issued $132 cardinal successful Class A shares of communal banal and paid an further $50 cardinal successful currency to get the assets. At property time, Silvergate’s stock terms was $107.74, up from $95 astatine the commencement of trading hours Monday.
Silvergate partnered with the Diem Association past twelvemonth to effort and motorboat a dollar-backed stablecoin. Under the presumption of that arrangement, Silvergate would some negociate the reserves arsenic good arsenic contented the stablecoin itself. This planned aviator reportedly met with absorption from national banking regulators.
In a statement, Silvergate CEO Alan Lane said his slope is “committed to continuing to foster the open-source assemblage that supports the technology, and we judge that existing contributors volition beryllium excited astir our imaginativeness going forward.”
He said his slope recovered a request for a dollar-backed stablecoin that is some “regulated and highly scalable.” Silvergate intends to motorboat specified a stablecoin by the extremity of the year.
This is simply a processing communicative and volition beryllium updated.
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Nikhilesh De is CoinDesk's managing exertion for planetary argumentation and regulation. He owns marginal amounts of bitcoin and ether.
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