In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering stablecoin payouts to a limited number of creators, marking a renewed foray into crypto-based transactions after abandoning its Libra project. Currently, this feature is available to a select group 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. Payments firm Stripe is providing support for this service, including crypto-related reporting for users, who may also receive tax documents from both Meta and Stripe related to their earnings and digital asset transactions.
A spokesperson from Stripe confirmed the company's involvement in this initiative. Jay Shah, head of Link at Stripe, stated, 'Businesses can now make stablecoin payouts directly to customers using Link. We are already partnering with Meta to enable their creators to receive stablecoins in their Link wallets in countries such as the Philippines and Colombia.' This development follows Meta's earlier efforts to integrate stablecoin payments on its platforms with the assistance of third-party vendors, with Stripe being a leading contender.
By doing so, Meta, with its vast user base of over 3 billion across its social media platforms globally, becomes one of the largest tech companies to experiment with stablecoins for real-world transactions, leveraging blockchain technology to facilitate global payments without relying on traditional banking systems. Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are increasingly seen as a faster and more cost-effective payment method. For instance, Visa reported that its stablecoin settlement network achieved an annualized transaction volume of $7 billion, marking a 50% growth in a quarter.
This initiative also marks Meta's return to stablecoins after its previous attempt to launch the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.