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 putting its Libra project on hold. Currently, this feature is accessible to a limited number 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. This service is facilitated by 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 digital asset transactions.
A spokesperson from Stripe has confirmed their 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 top contender for integration. By doing so, Meta, with its vast user base of over 3 billion across its social media platforms globally, becomes one of the largest tech companies to experiment with stablecoins for real-world payments, 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 seen as a faster and more economical method of payment. For instance, Visa reported that its stablecoin settlement network reached an annualized transaction volume of $7 billion, marking a 50% growth in just a quarter.
This initiative signifies 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.