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 available to a limited number of creators in Colombia and the Philippines, as per the information available on Meta's website. To utilize this feature, eligible users can link their crypto wallets to receive payouts in USDC, a stablecoin by Circle, on the Solana or Polygon blockchain networks.
This service is facilitated by Stripe, a payments firm that 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 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 administer stablecoin payments on its platforms, with Stripe being one of the top contenders for integration. With over 3 billion users across its social media platforms globally, Meta is now among the largest tech firms to experiment with stablecoins for real-world payments, utilizing blockchain technology to transfer money globally without relying on traditional banking systems.
Stablecoins, whose prices are pegged to fiat currencies, are increasingly being seen as a faster and more cost-effective payment method. For instance, Visa reported that its stablecoin settlement network reached $7 billion in annualized transaction volume, marking a 50% growth in a quarter. This initiative signifies Meta's return to stablecoins after its attempt to introduce the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.