Crypto Bank Silvergate To Become Issuer of Facebook-Backed Diem Stablecoin

Crypto Bank Silvergate To Become Issuer of Facebook-Backed Diem Stablecoin
  • Diem Association announced its partnership with crypto-friendly bank Silvergate.
  • Diem formerly known as Facebook’s Libra project.
  • Association withdraws an application for payment system license in Switzerland.

Diem Association, a blockchain-based payment system announces its partnership with Silvergate to launch U.S. dollar-denominated Stablecoin.

Stablecoins are cryptocurrencies, whose value ties to other assets like gold or U.S. dollar, and provides more stability.

Moreover, Diem relocates to U.S from Switzerland and withdrew an application for payment system license from Swiss Financial Markets Authority.

The association, formerly known as Facebook Libra’s project, consists of 26 financial firms including CoinBase.

Additionally, Diem Networks will run the Diem Payment network, where the network handles all transactions of Diem stablecoin.

Besides, Diem CEO Stuart Levey delivered their focus on a payment system that is safer for customers and businesses, with blockchain technology bringing benefits to the financial system while making transactions faster.

Its goal is to provide more efficient and cheaper payment solutions. Focuses more on security and protecting consumers and fights financial crime. 

Alan Lane, CEO of Silvergate states:

“We believe in the future of U.S. dollar-backed stablecoins and their potential to transform existing payment systems. We’re inspired by Diem’s technology and commitment to build a regulatory compliant payment that offers safe and secure way for transactions.”

Consequently, Mark Zuckerberg alludes to being a Bitcoin holder this week, declaring that his pet goats were named “Bitcoin” and “Max”.

Some crypto-industry spectators including CryptoQuant CEO Ki-Young-Ju proposes that the move is an indication of soon-to-come declarations for companies like Facebook to purchase Bitcoin.

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Cryptocurrency and blockchain tech interest has enticed Carolyna to write for NewsCrypto. She made her personal mission to help non-crypto geeks to understand the technology with ease.