In a significant move, Meta, the company behind prominent social media platforms like Facebook and Instagram, has initiated stablecoin payouts for creators, marking a renewed foray into crypto-based payments after its previous Libra project was shelved. This feature is initially available to a limited number of creators in Colombia and the Philippines, as per 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. This service is facilitated by Stripe, a payments firm that will also provide users with crypto-related reporting.
As a result, creators may receive tax documents from both Meta and Stripe related to their earnings and digital asset transactions. A spokesperson from Stripe has confirmed the company's role in this initiative.
Jay Shah, the head of Link at Stripe, mentioned, 'Businesses can now make stablecoin payouts directly to customers using Link. We are already collaborating with Meta so their creators can receive stablecoins in their Link wallets in countries such as the Philippines and Colombia.' This development follows Meta's earlier move to seek the assistance of third-party vendors for administering stablecoin payments, with Stripe being a leading contender. With over 3 billion users across its platforms globally, Meta's move positions it among 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, marking 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 due to regulatory scrutiny in 2022.