Key Takeaways
Meta is in preliminary talks with crypto firms to integrate stablecoins for cross-border payments.
The US stablecoin market has doubled over the past year, reaching a market cap of $245 billion, with USDT and USDC leading the charge.
Meta is exploring stablecoin integration into its platforms for global payouts, according to a Forbes report citing five people familiar with the matter.
The tech giant is holding early-stage discussions with crypto infrastructure firms, marking its return to digital assets after abandoning the Diem project in January 2022 due to regulatory challenges.
Meta originally launched the Diem initiative, initially called Libra, in June 2019 as a global stablecoin backed by a consortium of major companies.
The company recently appointed Ginger Baker, a fintech veteran and former Plaid executive who serves on the Stellar Development Foundation board, as Vice President of Product. Baker is spearheading Meta’s renewed stablecoin initiatives.
The discussions center on using stablecoins for cross-border payments as a more cost-effective alternative to traditional wire transfers.
An executive from a crypto infrastructure provider indicated that Instagram, Meta’s subsidiary, could utilize stablecoins to pay creators across different markets, reducing fees for transactions as small as $100.
The stablecoin market has grown substantially, with total market capitalization doubling to $245 billion over the past year, according to DeFiLlama data.
Tether (USDT) leads with approximately $150 billion in market cap, while USD Coin (USDC) has grown from $33 billion to around $60 billion during this period, according to CoinGecko data.
The timing of Meta’s renewed interest aligns with evolving US regulatory developments.
One key proposal, the GENIUS Act, a bill to create a legal framework for stablecoins, failed to advance in the Senate earlier today. However, Senator John Thune plans to file a motion next week to reconsider the bill, signaling continued momentum for stablecoin regulation.