Meta, the parent company of Facebook and Instagram, has initiated a program to pay certain creators in stablecoins, marking a resurgence of its interest in cryptocurrency-based transactions after abandoning the Libra project. Currently, this feature is available to a limited number of creators in Colombia and the Philippines, as stated 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.
This service is facilitated by Stripe, a payments company that will handle crypto-related reporting for users. 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 initiative. Jay Shah, the head of Link at Stripe, noted that businesses can now send stablecoin payouts directly to customers using Link, and Stripe is partnering with Meta to enable creators in countries like the Philippines and Colombia to receive stablecoins in their Link wallets. This development comes after Meta sought the assistance of third-party vendors to manage stablecoin payments on its platforms, with Stripe being a leading contender for integration. By doing so, Meta, with its vast user base of over 3 billion people globally, joins the ranks of large tech firms exploring the use of stablecoins for real-world transactions, leveraging blockchain technology to transfer money globally without relying on traditional banking systems.
The increasing popularity of stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, is attributed to their potential to provide faster and cheaper payment solutions. For instance, Visa reported that its stablecoin settlement network reached $7 billion in annualized transaction volume, representing a 50% growth in a quarter. This move marks Meta's re-entry into the stablecoin space after its previous attempt to launch the Libra token, later rebranded as Diem, which was ultimately shut down in 2022 due to regulatory scrutiny.