In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to its creators, marking a renewed foray into cryptocurrency-based payments after previously discontinuing its Libra project. Currently, a limited number of creators in Colombia and the Philippines can access this feature, which allows them to link a cryptocurrency wallet and receive payments in USDC, a stablecoin issued by Circle, via the Solana or Polygon blockchain networks.
This initiative is supported 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 for Stripe confirmed the company's involvement in this project.
The head of Link at Stripe, Jay Shah, noted that businesses can now utilize Link to send stablecoin payouts directly to customers, highlighting the company's partnership with Meta to facilitate stablecoin payments to creators in countries such as the Philippines and Colombia. This development follows Meta's search for third-party vendors to manage stablecoin payments on its platforms, with Stripe emerging as a key contender. By adopting stablecoins for real-world payments, Meta joins the ranks of large tech firms 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 gaining recognition as a faster and more cost-effective payment method. For instance, Visa reported that its stablecoin settlement network reached an annualized transaction volume of $7 billion, representing a 50% increase over the previous quarter. This move marks Meta's re-entry into the stablecoin arena after its previous attempt to launch the Libra token, later rebranded as Diem, which was ultimately discontinued due to regulatory scrutiny in 2022.