In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to its creators, marking a resurgence in crypto-based payments after abandoning its Libra project. This feature is presently available to a limited number 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 issued by Circle, on the Solana or Polygon blockchain networks. The service is facilitated by Stripe, a payments company, 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 digital asset transactions. A spokesperson from Stripe 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. We are already partnering with Meta to enable their creators to receive stablecoins in their Link wallets in countries such as the Philippines and Colombia.' This development comes after Meta sought assistance from third-party vendors to manage stablecoin payments on its platforms, with Stripe being a leading contender for integration. By doing so, Meta, with over 3 billion users globally, becomes one of the largest tech companies to experiment with stablecoins for real-world payments, leveraging blockchain technology to transfer money worldwide without relying on traditional banking systems.
Stablecoins, whose prices are pegged to fiat currencies, are increasingly seen as a faster and more affordable payment method. For instance, Visa reported that its stablecoin settlement network reached $7 billion in annualized transaction volume, with a 50% growth in a quarter. This initiative marks Meta's return to stablecoins after its attempt to launch the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.