Silvergate Capital to Buy Diem From Meta for $200 Million?

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  • Meta could be on the verge of selling Diem to Silvergate Capital
  • The crypto bank is thought to be close to issuing the stablecoins created by Diem
  • The sale would mark the end of Meta’s failed attempt that started back in 2019

Silvergate Capital could be in line to buy up Diem and bring Meta’s stablecoin project to some kind of fruition. FullyCrypto reported earlier this week that Meta was considering selling the rights and software created by the attempted cryptocurrency in a sign that it realized it could no longer launch the cryptocurrency. Diem, initially called Libra, has changed massively since it entered the scene in June 2019 to the point where it had become a shadow of its former self, and Silvergate may now launch Diem under a different name.

Meta to Sell Diem For $200 Million?

Diem was already known to be in trouble long before its head David Marcus quit the project in December, and recent developments show that his departure wasn’t coincidental. Earlier this week it was mooted that Meta was considering selling what remains of Diem, which changed its name from Libra in December 2020 in a bid to divorce itself from the then Facebook brand, and the Wall Street Journal reports that the buyer could be Silvergate Capital, which has crypto at its heart.

The bank, which the WSJ calls a “small California bank that serves bitcoin and blockchain companies”, is said to be paying around $200 million for the tech.

Silvergate Capital Close to Launching Diem Stablecoins

The WSJ reports that Silvergate has already reached a deal with Diem to issue some of the stablecoins, although it is not known if the coins will be rebranded before launch. While the sale would represent an ideological failure for Meta as well as a financial loss, if Silvergate was to launch the stablecoin it would at least show that the technology developed by Facebook and then Meta was at least up to par.

It was just everything else that was wrong.