Meta joins the stablecoin race, small payments become new battleground
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Meta joins the stablecoin race, small payments become new battleground
Meta is currently in the "learning and understanding" phase and has not yet selected a specific stablecoin provider.
Navigating Web3 tides with focused insightsAuthor: Cryptoslate
Translation: Blockchain Knight
Meta is exploring stablecoin-based payment infrastructure as it makes another push to integrate blockchain technology into its platforms, according to Fortune magazine on May 8, citing sources familiar with the matter.
The tech giant is holding preliminary discussions with multiple crypto asset firms to assess the feasibility of using stablecoins as a means of managing cross-border payments, the report said.
Discussions involve use cases such as creator payouts on Instagram, where stablecoins could offer a lower-cost alternative to fiat-based wire transfers.
Meta is currently in a "learning and understanding" phase and has not yet selected a specific stablecoin provider, according to an executive at a crypto asset infrastructure firm.
The company declined to comment on the matter.
Prior Attempts
Prior to this latest move, Meta made a high-profile but ultimately unsuccessful attempt in 2019 to launch a stablecoin called the Libra project (later renamed Diem), which aimed to build a global payment network backed by a basket of fiat currencies.
However, the project was shut down due to regulatory pressure from U.S. lawmakers, and Diem's assets were acquired by Silvergate Bank.
Ginger Baker, who joined Meta in January as vice president of product, is leading the company's new stablecoin initiative. Baker previously worked at fintech firm Plaid and brings relevant experience; he also currently serves on the board of the Stellar Development Foundation, which oversees the Stellar blockchain.
Meta's move comes amid growing efforts in the United States to achieve comprehensive recognition and regulation of stablecoins as digital representations of the dollar.
Fidelity Investments recently revealed it is testing a stablecoin, while payments giant Visa plans to launch a platform for tokenizing fiat currencies. Bank of America has also hinted at plans to launch its own stablecoin once the regulatory landscape becomes clearer.
Industry Engagement and Personnel Moves
Sources said Meta began engaging with crypto asset infrastructure firms in 2025, with early discussions focused on stablecoins as a tool to reduce international payment costs.
The focus has been on micropayments, particularly payments to content creators and digital freelancers operating across multiple markets, according to three people familiar with the meetings.
Circle, the issuer of USDC, has been in talks with Meta through Matt Cavin, a former executive at gaming blockchain startup Immutable who joined Circle in March.
Meta CEO Mark Zuckerberg acknowledged the failure of the Diem project earlier this week during an appearance at a Stripe event, stating that the project had come to an end.
Zuckerberg added that while Meta often leads in adopting new technologies, it sometimes must re-enter markets it previously exited due to moving too early or facing resistance.
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