In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering stablecoin payouts to its creators, signaling a renewed interest in cryptocurrency-based payments after its previous Libra project was put on hold. Currently, this feature is available to a limited number of creators in Colombia and the Philippines. To receive these payouts, eligible users can link their crypto wallets and get paid in USDC tokens on the Solana or Polygon blockchain networks.
Stripe, a prominent payments firm, is supporting this service by providing 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 involvement in this initiative.
According to Jay Shah, head of Link at Stripe, 'Businesses can now send stablecoin payouts directly to customers using Link. We're already partnering with Meta so their creators can receive stablecoins in their Link wallets in countries like the Philippines and Colombia.' This development follows Meta's search for third-party vendors to facilitate stablecoin payments on its platforms, with Stripe being a leading contender for this integration. By doing so, Meta, with its vast user base of over 3 billion people globally, becomes one of the largest tech companies to experiment with stablecoins for real-world payments, utilizing blockchain technology to transfer money worldwide without relying on traditional banking systems.
Stablecoins, which are cryptocurrencies tied 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 reached $7 billion in annualized transaction volume, marking a 50% growth in just a quarter. This initiative also marks Meta's return to stablecoins after its attempt to introduce the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.