In a significant move, Meta, the parent company of Facebook and Instagram, has introduced stablecoin payouts for creators, marking a resurgence in its crypto-powered payment endeavors after abandoning the Libra project. Currently, this feature is available to a limited number of creators in Colombia and the Philippines, as per the information on Meta's website.
Eligible creators can link their crypto wallets to receive payouts in USDC, a stablecoin by Circle, on the Solana or Polygon blockchain networks. Payments firm Stripe is providing support for this service, including crypto-related reporting for users, who may also receive tax documents from both Meta and Stripe related to their earnings and digital asset transactions.
A spokesperson from Stripe confirmed the company's involvement. Jay Shah, the head of Link at Stripe, mentioned that businesses can now send stablecoin payouts directly to customers using Link, and they are already collaborating with Meta to enable creators in countries like the Philippines and Colombia to receive stablecoins in their Link wallets. This development comes after Meta sought the assistance of third-party vendors for administering stablecoin payments on its platforms, with Stripe being a leading contender for integration.
By doing so, Meta, with its vast user base of over 3 billion across its social media platforms globally, becomes one of the largest tech companies to experiment with stablecoins for real-world payments, utilizing blockchain technology to transfer money globally without relying on traditional banking systems. Stablecoins, whose prices are pegged to fiat currencies, are increasingly seen as a faster and more economical payment method.
For instance, Visa reported that its stablecoin settlement network reached $7 billion in annualized transaction volume, with a 50% growth in a quarter. This initiative signifies Meta's return to stablecoins after its attempt to launch the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.