The Diem Association, founded by Facebook, announced a new model of a planned stablecoin to be issued by Silvergate, registered in California.
Silvergate Bank Is To Issue Diy
Supported by Facebook, the Diem Association has established cooperation with the cryptocurrency-friendly Silvergate bank. Objective? Launch a stablecoin that will be pegged to the US dollar.
The association is thus shifting its main activity from Switzerland to the United States and withdrawing its payment system license application from the Swiss Financial Markets Authority.
The association, which comprises 26 companies, including the Nasdaq-listed Coinbase cryptocurrency platform, now plans to continue its stablecoin issuance plans through Silvergate, which is to be the issuer of Diem and will manage the project reserve.
Diem Networks U.S., a wholly owned subsidiary of Diem, will operate Diem Payment Network, an authorized blockchain-based payment system that facilitates stablecoin transactions.
While Silvergate is a state licensed bank in California and a member of the Federal Reserve, Diem Networks U.S. would like to register now as a US money services company.
Stablecoins are the future
– We believe in the future of US dollar backed stablecoins and their potential to transform existing payment systems – Alan Lane, CEO of Silvergate, told the media. – We are inspired by Diem technology and our commitment to creating a compliant payment system that gives you a secure way to send money – added.
– Although our plans are fully within US regulations and no longer require a license from FINMA, the project has benefited significantly from the intensive licensing process in Switzerland – noted Diem CEO Stuart Levey.
The news came shortly after Facebook CEO Mark Zuckerberg suggested he was a Bitcoin holder earlier this week, announcing that two of his goats had been named “Bitcoin” and “Max.” Some industry observers, including CryptoQuant CEO Ki Young Ju, have further suggested that the move could be a sign of upcoming Bitcoin purchases via Facebook.