In a significant development, Meta, the company behind prominent social media platforms Facebook and Instagram, has begun offering payouts in stablecoins to its creators. This move marks a revival of the company's interest in cryptocurrency-based payments, following the discontinuation of its Libra project.
Currently, a limited number of creators in Colombia and the Philippines can access this feature, which allows them to link a cryptocurrency wallet and receive payments in USDC, a stablecoin issued by Circle, on the Solana or Polygon blockchain networks. The rollout of this feature is facilitated by Stripe, a leading payments firm, which 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 transactions involving digital assets.
A spokesperson for Stripe has confirmed the company's involvement in this initiative. Jay Shah, the head of Link at Stripe, stated that businesses can now use Link to send stablecoin payouts directly to their customers. He also mentioned that Stripe is partnering with Meta to enable creators in countries such as the Philippines and Colombia to receive stablecoins in their Link wallets. This development comes on the heels of Meta's search for third-party vendors to manage stablecoin payments on its platforms, with Stripe being a leading contender for this integration.
By embracing stablecoins for real-world payments, Meta, with its vast user base of over 3 billion people across the globe, is now among the largest technology companies to leverage blockchain technology for transferring money worldwide without relying on traditional banking systems. Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are increasingly being viewed 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, marking a 50% growth in just one quarter. This initiative represents Meta's re-entry into the stablecoin space after its previous attempt to launch the Libra token, later rebranded as Diem, which was ultimately shut down due to regulatory scrutiny in 2022.