Meta Abandons Milestone Crypto Project, Negotiates Stablecoin Deployment Three Years Later
In 2019, Meta announced a bold plan to launch a new cryptocurrency usable across Facebook, WhatsApp, and numerous digital platforms. However, due to strong opposition from legislative bodies like the US Congress, the company ultimately shelved the plan. Now, Meta is once again exploring the cryptocurrency domain. According to five informed sources, the company is discussing the introduction of stablecoins as a payment settlement tool with crypto enterprises and has hired a product vice president with crypto experience to lead the negotiations. These five sources, whose identities have been confirmed by Fortune magazine, requested anonymity to discuss confidential business matters.
Meta declined to comment.
Stablecoins, a type of cryptocurrency pegged to the US dollar, have long been a popular product in the blockchain industry, but the Biden administration's strong anti-crypto policies have limited their mainstream application. However, with Trump's election last November and payment giant Stripe's recent $1.1 billion acquisition of stablecoin startup Bridge, stablecoins' application in broader financial fields is being activated—especially in cross-border payment scenarios.
Within the past month, Visa announced a partnership with stablecoin infrastructure provider Bridge, financial company Fidelity revealed it is developing its own stablecoin, and Stripe launched a new financial account based on stablecoins.
Meta's interest in this technology reflects the growing demand for stablecoins among non-crypto enterprises. Currently, the US Congress is reviewing two bills aimed at regulating stablecoins, which may end the long-standing regulatory uncertainty in this field.
Meta's Crypto Layout
According to LinkedIn data, Ginger Baker joined Meta in January as a product vice president, specializing in fintech and payments. She previously held an executive position at fintech company Plaid and currently serves as a board member of crypto enterprise Stellar Development Foundation (a Layer-1 blockchain crypto company). Informed sources say she is leading Meta's stablecoin exploration.
Meta declined to arrange an interview with Baker.
Three informed sources stated that Meta has already contacted multiple crypto infrastructure companies early this year. Discussions are in early stages but focus on stablecoins' core advantages over fiat currency—enabling low-cost payments to individuals in different regions, avoiding high-fee traditional methods like wire transfers.
A crypto infrastructure company executive speculated that Instagram might integrate stablecoins to pay content creators small amounts around $100 in different markets, which would save transaction fees compared to fiat payment. They described Meta as being in "learning mode" and noted the company might remain open to various stablecoin types rather than locking into a single product like USDC. Two other crypto enterprise executives also confirmed to Fortune that they have had initial contact with Meta regarding payment use cases.
Meanwhile, stablecoin issuer Circle hired Matt Cavin from blockchain gaming company Immutable in March. Informed sources say he is leading negotiations with Meta and other tech giants. Cavin's LinkedIn profile shows he is currently Circle's "Tier 1 Strategic Partnerships" head but does not reveal specific partner companies.
Stablecoin Surge
Meta's stablecoin exploration is particularly noteworthy as it was once the most prominent tech giant in the crypto space. In 2019, Meta's blockchain initiative evolved into the Libra project—a consortium including companies like Uber and PayPal, intending to launch a stablecoin backed by a fiat currency combination. After renaming the project to Diem, Meta abandoned it in early 2022 due to regulatory pressure and sold its assets to crypto-friendly bank Silvergate.
Libra employees subsequently founded various crypto enterprises, including Lightspark bitcoin payment infrastructure company founder David Marcus. Other former employees transformed Meta's technology to independently develop blockchains, most notably the founders of public chains Aptos and Sui, both using the Move programming language developed by Meta.
A video obtained by Fortune shows Facebook founder and CEO Mark Zuckerberg acknowledging Diem's failure during a Stripe conference on Tuesday while conversing with co-founder John Collison: "That project is dead." When asked about Meta's tendency to be first in technological trends, Zuckerberg stated: "Being first is certainly more interesting than being late," but added, "We also have many cases of being late to the game, and we're equally good at that."
