The One Who Bought Meta's Stablecoin Diem Was SBF's Good Friend
The article discusses the resurgence of rumors about Meta's potential re-entry into the stablecoin market by 2026, drawing parallels to its earlier project, Libra (later renamed Diem), which was sold due to regulatory pressures. The buyer was Silvergate Bank, a key banking partner of FTX and closely associated with its founder, Sam Bankman-Fried (SBF). Silvergate acquired Diem’s assets in early 2022 for $182 million, including $132 million in newly issued stock and $50 million in cash, betting on the potential of bank-issued stablecoins.
SBF, who frequently praised Silvergate as foundational to the crypto industry’s infrastructure, was believed to have advised on the acquisition. The deal aligned with his vision of a unified financial system combining trading, tokenization, and stablecoins. However, following FTX’s collapse in 2022, Silvergate faced a bank run, liquidated assets at a loss, and wrote down the Diem acquisition to zero. The bank eventually underwent voluntary liquidation in March 2023, paying millions in fines and surrendering its banking licenses. By 2024, Silvergate’s collapse was complete, and Diem’s technology was largely abandoned.
marsbit02/25 10:27
