Confirmed: Facebook has sold its digital currency project to a US bank



After much speculation and rumors in the media around the world, an American bank has finally confirmed that it has acquired the entire digital currency project on Facebook. The Diem Association also said it would begin the process of disbanding the group in the next few weeks.

According to Kevin Desk, the Silvergate Bank of the United States confirmed on Monday that it will buy the technology franchise and other assets of the Dayim project. The theme of the StableQueen project was the former Meta or Facebook collection, which was presented for the first time in June 2019 under the name Libra.

In a statement issued Monday, the Dayem Association said it would begin the process of dissolving the group and its subsidiaries in the next few weeks.

Silvergate also announced in a press release late Monday that it was acquiring Diamond’s development, deployment and operations tools, as well as tools to “set up a blockchain-based payment network” for remittances and other applications.

The bank described the work of the Diem Association as a “pre-launch” activity of the project. Diem has faced strong opposition from regulators since it was first unveiled in June 2019. Rumors have been circulating in the media since last week that the Dayem Group is seeking to sell its assets to pay off investors.

Stuart Levy, CEO of Dayem Collection, recently said in a statement:

A senior regulator told us that Dayem is the best Stable Quinn project the US government has ever encountered.

He added that they had concluded from talks with government regulators that their team was not allowed to launch Deyim.

Silvergate said it issued $ 132 million in Class A shares and paid $ 50 million in cash to buy the Dayem project.

Class A shares are in fact forms of shares that are not publicly traded on the stock market. Holders of this form of shares may not trade with other persons and have more voting rights than Class B shares.

Silvergate is currently trading at $ 107.74 per share and has risen about 13.4% in the last 24 hours.

Read also: Completion of a digital currency project on Facebook; Zuckerberg has not yet retreated

Silvergate partnered with the Dayem Association last year to issue a stable dollar coin. Under the terms of the deal, Silvergate, in addition to reserve management, had to launch StableCoin itself. According to reports, this trial is facing resistance from regulators and banking institutions.

Alan Lane, Silvergate’s chief executive, said in a statement:

[بانک ما] We want to continue to strengthen the gaming community that supports this technology, and we believe that current players will be thrilled by our vision for the future.

Lane added that SilverGate needs a stable coin backed by dollars to be “both legal and highly scalable.” Silvergate plans to release this stable coin by the end of the year.

The publication confirmed: Facebook sells digital currency project to a US bank appeared for the first time in Digital Currency.

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