In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to its creators, marking a resurgence in cryptocurrency-based transactions after abandoning its Libra project. Currently, this feature is available to a limited number of creators in Colombia and the Philippines, as per a statement on Meta's website. Eligible creators can link their crypto wallets to receive payouts in USDC, a stablecoin issued by Circle, on the Solana or Polygon blockchain networks. This service is made possible through a partnership with Stripe, a payments firm that will handle crypto-related reporting for users.
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.
Jay Shah, head of Link at Stripe, mentioned that 'businesses can now send stablecoin payouts directly to customers using Link,' referring to Stripe's customer checkout service. 'We are already partnering with Meta so their creators can receive stablecoins in their Link wallets in countries like the Philippines and Colombia.' This development comes after Meta sought assistance from 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 across its social media platforms globally, becomes one of the largest tech companies to experiment with stablecoins for real-world transactions, utilizing blockchain technology to transfer money globally 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 method of payment.
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 signifies Meta's return to stablecoins after its previous attempt to introduce the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.