In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to its creators, marking a renewed foray into cryptocurrency-based payments after putting its Libra project on hold. This new development is currently being rolled out to a limited number of creators in Colombia and the Philippines, as per information available on Meta's website.
Eligible creators have the option to link their crypto wallets and receive payouts in USDC, a stablecoin issued by Circle, on the Solana or Polygon blockchain networks. The payments firm Stripe is providing support for this initiative, including handling crypto-related reporting for users. As a result, creators may receive tax documents from both Meta and Stripe related to their earnings and transactions involving digital assets.
A spokesperson from Stripe has confirmed the company's involvement in this project. Jay Shah, who heads Link at Stripe, stated, 'Businesses can now make stablecoin payouts directly to their customers using Link, our customer checkout service. We are already working with Meta to enable their creators to receive stablecoins in their Link wallets in countries such as the Philippines and Colombia.' This development comes on the heels of Meta seeking assistance from third-party vendors to facilitate stablecoin payments on its platforms, with Stripe being a leading contender for this integration.
By doing so, Meta, with its vast user base of over 3 billion across its social media platforms worldwide, joins the ranks of large tech firms exploring the use of stablecoins for real-world payments, leveraging blockchain technology to transfer money globally without relying on traditional banking systems. Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are increasingly being seen as a faster and more cost-effective method of payment.
For instance, Visa has reported that its stablecoin settlement network has reached an annualized transaction volume of $7 billion, representing a 50% growth over the previous quarter. This initiative marks Meta's return to the stablecoin space after its previous attempt to launch the Libra token, later renamed Diem, which was shelved due to regulatory scrutiny in 2022.