In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering stablecoin payouts to creators, marking a renewed foray into crypto-powered payments after previously abandoning its Libra project. Currently, this feature is available to a select group 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 by Circle, on the Solana or Polygon blockchain networks.
This initiative is supported by Stripe, a payments firm that will handle crypto-related reporting for users, who may also receive tax documents from both Meta and Stripe related to their earnings and digital transactions. A spokesperson from Stripe has confirmed the company's role in this endeavour. Jay Shah, head of Link at Stripe, mentioned that businesses can now make stablecoin payouts directly to customers through Link, with Meta being one of the partnering companies to enable creators in countries like the Philippines and Colombia to receive stablecoins in their Link wallets.
This development follows Meta's search for third-party vendors to facilitate stablecoin payments, with Stripe being a leading 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 recognition as a faster and more cost-effective payment method. For instance, Visa has reported a significant growth in its stablecoin settlement network.
This move marks Meta's re-entry into the stablecoin space after its previous attempt with the Libra token, later renamed Diem, was shut down due to regulatory scrutiny in 2022.