In a significant move, Meta, the parent company of Facebook and Instagram, has introduced stablecoin payments for its creators, marking a renewed foray into crypto-powered transactions after its earlier Libra project was shelved. This new feature, currently available to a limited number of creators in Colombia and the Philippines, allows eligible users to link their crypto wallets and receive payouts in USDC, a stablecoin issued by Circle, on the Solana or Polygon blockchain networks. Stripe, a leading payments firm, is providing support for this initiative by offering crypto-related reporting services. As a result, creators may receive tax documents from both Meta and Stripe related to their earnings and digital asset transactions.
Jay Shah, the head of Link at Stripe, noted that businesses can now utilize Link to send stablecoin payouts directly to customers, with Meta being a key partner in this endeavor, particularly in countries like the Philippines and Colombia. This development comes on the heels of Meta's search for third-party vendors to facilitate stablecoin payments on its platforms, with Stripe emerging as a prominent contender.
By embracing stablecoins for real-world payments, Meta joins the ranks of large tech firms leveraging blockchain technology to transfer money 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 has reported that its stablecoin settlement network has achieved an annualized transaction volume of $7 billion, representing a 50% growth over the previous quarter.
This move signifies Meta's re-entry into the stablecoin space after its earlier attempt with the Libra token, later rebranded as Diem, which was discontinued in 2022 due to regulatory pressures.