In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to its creators, marking a notable return to cryptocurrency-based transactions after previously discontinuing its Libra project. Currently, this feature is available to a limited number of creators in Colombia and the Philippines, as per information on Meta's website. Eligible creators can link their cryptocurrency wallets to receive payments 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, the head of Link at Stripe, stated, 'Businesses can now send stablecoin payouts directly to customers using Link, our customer checkout service. We are already working 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 search for third-party vendors to facilitate stablecoin payments on its platforms, with Stripe being a leading contender for this integration.
By embracing stablecoins for real-world transactions, Meta joins the ranks of large tech companies leveraging blockchain technology to transfer funds globally without relying on traditional banking systems. Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are increasingly recognized as a faster and more cost-effective payment method.
For instance, Visa has reported that its stablecoin settlement network has reached an annualized transaction volume of $7 billion, marking a 50% growth in a quarter. This initiative also signifies Meta's renewed interest in stablecoins after its previous attempt to launch the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.