Bloomberg has reported that the Diem Association is exploring selling its intellectual property and finding a home for its development team to return money to investors, based on un-named sources. The Wall Street Journal says the holding company of Silvergate Bank is considering buying the technology for $200 million. The Diem stablecoin (formerly Libra) was founded by Facebook (Meta) in June 2019 and encountered massive regulatory pushback both in the United States and from central banks worldwide.
According to the Bloomberg report, Meta still owns a third of the venture, despite an array of outside investors randing from venture capital firm Andreessen Horowtiz, to Coinbase, Uber and Singapore investment giant Temasek.
In many ways, the signs have been there for some time. The most recent is the departure of David Marcus from Meta. He was the founding force behind both Diem and Meta’s Novi wallet. Novi recently launched limited pilots with the Paxos stablecoin, but that too faces significant headwinds from regulators.
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