Meta Explores Stablecoin Launch After Diem Shutdown

Meta, the technology conglomerate, is reportedly exploring the introduction of a stablecoin to facilitate payouts, according to sources familiar with the matter. This move comes as the company seeks to re-enter the cryptocurrency space after the failure of its previous blockchain project, Libra, which was later renamed Diem and ultimately shut down in 2022 due to regulatory challenges.

To support its stablecoin efforts, meta has hired Ginger Baker, a vice president of product with extensive experience in the crypto industry. This strategic hire underscores the company's commitment to leveraging blockchain technology for financial transactions.

If Meta proceeds with this initiative, it will be entering a rapidly growing market where stablecoins, digital tokens pegged to fiat currencies like the U.S. dollar, are gaining significant traction. The stablecoin sector has attracted interest from a variety of firms, including Ripple, mastercard, Visa, Dutch bank ING, and Stripe.

The potential for growth in the stablecoin market is substantial. According to analysts' forecasts, the market could expand to $2 trillion by the end of 2028, driven by the increasing adoption of digital currencies and the need for stable, reliable financial instruments.