Facebook’s Diem cryptocurrency, originally called Libra, is being sold to Silvergate bank, reports Silicon Republic.
Since its launch by Facebook in 2019, Diem has faced setbacks and resistance from regulators.
After years of setbacks, the cryptocurrency project started by Facebook is coming to a close, writes Leigh McGowran. The group behind Diem has sold its intellectual property and technology assets to Silvergate Bank for $182 million in cash and stock.
Diem Association CEO Stuart Levey confirmed that the group will be winding down in the coming weeks, ending a journey that began in 2019 when Diem was originally called Libra.
The group planned to launch a stable-value digital currency – or stablecoin – designed to make payments and transfers cheaper and faster, but faced pushback from regulators.
“Despite giving us positive substantive feedback on the design of the network, it nevertheless became clear from our dialogue with federal regulators that the project could not move ahead. As a result, the best path forward was to sell the Diem Group’s assets,” Levey said in a statement.