Silvergate Capital to become the exclusive issuer of Facebook’s Diem Stablecoin – fr

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Silvergate Capital to become the exclusive issuer of Facebook’s Diem Stablecoin – fr


The crypto bank Silvergate Capital (NYSE: SI) and Facebook (NASDAQ: FB) announced a partnership that will see Silvergate become the exclusive issuer of the US Dollar Stablecoin Diem, formerly known as Facebook’s Libra Project.

Stablecoins are cryptocurrencies linked to other assets such as gold or the US dollar in order to provide more stability to digital currency, while also reaping the benefits that digital currencies can offer when it comes to payment solutions. .

Not only will Silvergate become the exclusive issuer of Diem, but it will also manage the Diem reserve.

“We believe in the future of US dollar-backed stablecoins and their potential to transform existing payment systems,” Silvergate Capital CEO Alan Lane said in a statement. “We are inspired by technology and Diem’s ​​commitment to creating a regulatory compliant payment system that offers a safe and secure way to transfer money. We are delighted to be in a place in the process where we can confidently announce this product and look forward to continuing our work with Diem to bring this to market. “

Image source: Getty Images.

The Diem Association is a member-based association with merchants, payment service providers, social impact partners and other entities. Its objective is to offer a more efficient and less expensive, more secure payment solution capable of protecting consumers and fighting financial crime.

Silvergate is a small $ 7 billion asset bank specializing in banking cryptocurrency exchanges and institutional cryptocurrency transactions that interact with each other.

Its Silvergate Exchange Network (SEN) is a real-time payment network that can instantly clear US dollar transactions 24 hours a day, 365 days a year, between two network users. It is ideal for traders and cryptocurrency exchanges, as cryptocurrencies are traded around the clock.

During Silvergate’s recent earnings call, management said that SEN already provides each of the four regulated U.S. issuers of stablecoins with critical infrastructure to operate. The bank also said stablecoins presented a significant opportunity for commission income.

Silvergate shares rose more than 18% in after-hours trading at 6:10 p.m. EDT.

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