In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to a limited group of creators, marking a notable return to cryptocurrency-powered transactions after discontinuing its Libra project. Currently, this feature is available to select creators in Colombia and the Philippines, as per the information on Meta's website. Eligible creators can link their crypto wallets to receive USDC token payouts on the Solana or Polygon blockchain networks. Payments firm Stripe is providing support for this service, including crypto-related reporting for users, who may receive tax documents from both Meta and Stripe for their earnings and digital asset transactions.
A spokesperson from Stripe 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 comes after Meta's search for third-party vendors to facilitate stablecoin payments on its platforms, 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 firms to experiment with stablecoins for real-world payments, utilizing blockchain technology to transfer money globally without relying on traditional banking systems. Stablecoins, whose prices are pegged to fiat currencies, are increasingly seen as a faster and more economical payment method. For instance, Visa reported that its stablecoin settlement network achieved $7 billion in annualized transaction volume, marking a 50% growth in a quarter.
This initiative signifies Meta's re-entry into the stablecoin arena after its previous attempt to introduce the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.