Meta-backed stablecoin project Diem is now winding up the foundation and selling its technology to Silvergate Bank for $200 million, the Wall Street Journal reported Wednesday.
In May 2021, Silvergate bank had partnered with the Diem Foundation to exclusively launch Diem USD, a stablecoin backed by multiple fiat currencies to expand its user base.
The deal was meant to appease the regulators who had several problems with the project, including its potential for mass surveillance and illicit activities. However, the project still failed to lessen the scrutiny and Diem stablecoin failed to get a greenlight.
Bloomberg first reported the news on January 25 that the project has been in talks with an investment bank to sell off its assets and return the capital to investors. Diem (then Libra), introduced in 2019, was backed by top industry players including Mastercard, PayPal, Booking Holdings, eBay, Andreessen Horowitz, Visa, and several others.