In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to a limited number of creators, marking a renewed foray into crypto-powered payments following the discontinuation of its Libra project. Currently, this feature is available to a select group of creators in Colombia and the Philippines, as per information available 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. Payments firm Stripe is providing support for this initiative, handling crypto-related reporting and potentially issuing tax documents to creators for their earnings and digital asset transactions. A spokesperson from Stripe has confirmed the company's involvement in this project. Jay Shah, the head of Link at Stripe, stated that businesses can now utilize Link to send stablecoin payouts directly to customers, with Meta being one of the initial partners to leverage this service for its creators in countries like 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. By embracing stablecoins for real-world transactions, Meta joins the ranks of large tech firms exploring the potential of blockchain technology to facilitate global payments 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 that its stablecoin settlement network has reached an annualized transaction volume of $7 billion, representing a 50% growth over the previous quarter. This initiative marks Meta's re-entry into the stablecoin space after its previous attempt with the Libra token, later renamed Diem, which was discontinued in 2022 due to regulatory pressures.