In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to a select group of creators. This development marks a notable return to crypto-based payments, following the company's decision to discontinue its Libra project. Currently, this feature is accessible to a limited group of creators based in Colombia and the Philippines, as per information available on Meta's website. Eligible users can link their crypto wallets to receive payouts in USDC, a stablecoin offered by Circle, on the Solana or Polygon blockchain networks.
This service is facilitated by Stripe, a prominent 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 the company's involvement in this initiative.
Jay Shah, the head of Link at Stripe, stated that 'businesses can now send stablecoin payouts directly to customers using Link,' referring to the company's customer checkout service. He added that they are already partnering with Meta to enable creators to receive stablecoins in their Link wallets in countries such as the Philippines and Colombia. This development follows Meta's earlier decision to seek assistance from third-party vendors for administering stablecoin payments on its platforms, with Stripe being a leading contender for integration.
With over 3 billion users across its social media platforms globally, Meta has become one of the largest tech firms to experiment with stablecoins for real-world payments, utilizing blockchain technology to transfer funds globally without relying on traditional banking systems. Stablecoins, whose prices are tied to fiat currencies, are increasingly being viewed 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, representing a 50% growth in a quarter. This initiative marks 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.