In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to certain creators, marking a resurgence of crypto-based payments. This development comes years after the company shelved its ambitious Libra project. Currently, a restricted group of creators in Colombia and the Philippines can access this feature, as announced on Meta's website.
To participate, eligible users must link a cryptocurrency wallet to receive payments in USDC, a stablecoin issued by Circle, on either the Solana or Polygon blockchain. The payments firm Stripe is providing support for this initiative, handling crypto-related reporting and potentially issuing tax documents to creators for their earnings and digital asset transactions. A spokesperson from Stripe confirmed the company's involvement in this project.
Jay Shah, the head of Link at Stripe, stated, 'Businesses can now send stablecoin payouts directly to customers using Link. We are already partnering with Meta so their creators can receive stablecoins in their Link wallets in countries like the Philippines and Colombia.' This collaboration follows Meta's search for third-party vendors to facilitate stablecoin payments on its platforms, with Stripe being a leading contender. By embracing stablecoins for real-world transactions, Meta joins the ranks of large tech firms experimenting with blockchain technology to transfer funds globally without relying on traditional banking systems.
Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are gaining traction 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 one quarter. This move marks 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 in 2022 due to regulatory scrutiny.