Meta, the parent company of Facebook and Instagram, has initiated the process of offering payouts in stablecoins to its creators, marking a significant return to cryptocurrency-based payments after abandoning its Libra project. This feature is currently available to a limited number of creators in Colombia and the Philippines, as per the information available on Meta's website. Creators who are eligible can link their cryptocurrency wallets and receive payouts in USDC, a stablecoin by Circle, on the Solana or Polygon blockchain networks.
The payments firm Stripe is providing support for this service, including crypto-related reporting for users, and 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 initiative.
Jay Shah, the head of Link at Stripe, stated that businesses can now send stablecoin payouts directly to their customers using Link, and that 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 assistance from third-party vendors to facilitate 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, is now among the largest tech companies to experiment with stablecoins for real-world payments, utilizing blockchain technology to transfer money globally to users without relying on traditional banking systems. Stablecoins, whose prices are pegged to fiat currencies, are increasingly being viewed as a faster and more cost-effective payment method.
For instance, Visa reported that its stablecoin settlement network reached $7 billion in annualized transaction volume, experiencing a 50% growth in just a quarter. This move marks Meta's re-entry into the stablecoin space after its attempt to introduce the Libra token, later renamed Diem, was shut down due to regulatory scrutiny in 2022.