In a significant move, Meta, the company behind prominent social media platforms Facebook and Instagram, has begun offering payouts in stablecoins to its creators. This development marks a resurgence in the company's exploration of cryptocurrency-powered payments, following the discontinuation of its Libra project. Currently, a limited number of creators in Colombia and the Philippines have access to this feature, which allows them to link a cryptocurrency wallet and receive payouts in USDC, a stablecoin issued by Circle, on the Solana or Polygon blockchain networks. This service is made possible through a partnership with Stripe, a leading payments firm that will handle crypto-related reporting for users.
As a result, creators may receive tax documents from both Meta and Stripe, detailing their earnings and transactions involving digital assets. A spokesperson from Stripe confirmed the company's involvement in this initiative. Jay Shah, the head of Link at Stripe, noted that businesses can now utilize Link to send stablecoin payouts directly to customers.
Stripe is already collaborating with Meta to enable creators in countries like the Philippines and Colombia to receive stablecoins in their Link wallets. This development follows Meta's search for third-party vendors to facilitate stablecoin payments on its platforms, with Stripe being a top contender for this integration. By embracing stablecoins for real-world payments, Meta joins the ranks of large tech firms experimenting with blockchain technology to transfer money globally without relying on traditional banking systems. The use of stablecoins, whose value is pegged to that of fiat currencies, is increasingly seen as a faster and more cost-effective method of payment.
For instance, Visa reported that its stablecoin settlement network reached an annualized transaction volume of $7 billion, representing a 50% growth over a quarter. This initiative signifies Meta's return to the stablecoin space after its previous attempt to launch the Libra token, later renamed Diem, which was ultimately shut down in 2022 due to regulatory scrutiny.