In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to its creators, marking a resurgence of crypto-based payments after the company previously shelved its Libra project. Currently, this feature is available to a limited number of creators in Colombia and the Philippines, as per the information provided 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 leading payments firm, which will also provide users with crypto-related reporting. As a result, creators may receive tax documents from both Meta and Stripe related to their earnings and transactions involving digital assets.
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 make stablecoin payouts directly to customers using Link, and we are already collaborating 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 top contender for this integration.
By doing so, Meta, with its vast user base of over 3 billion people across its social media platforms globally, becomes one of the largest tech companies to experiment with stablecoins for real-world payments, utilizing 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 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, experiencing a 50% growth in just one quarter. This initiative marks Meta's re-entry into the stablecoin space after its previous attempt to launch the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.