In a significant move, Meta, the parent company of Facebook and Instagram, has initiated stablecoin payouts for creators, marking a resurgence in its exploration of crypto-powered transactions. This development comes after the company previously abandoned its Libra project.
Currently, a restricted group of creators in Colombia and the Philippines 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 made possible through a partnership with 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. Jay Shah, the head of Link at Stripe, noted that businesses can now utilize Link to send stablecoin payouts directly to customers, with Meta being one of the first partners to leverage this feature for its creators in countries such as the Philippines and Colombia.
This move positions Meta, with its vast user base of over 3 billion people across its social media platforms, as a pioneer among large tech firms in experimenting with stablecoins for real-world transactions, utilizing blockchain technology to facilitate global money transfers without relying on traditional banking systems. Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are increasingly recognized 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, experiencing a 50% growth in just one quarter.
This initiative marks Meta's re-entry into the stablecoin space after its previous attempt to launch the Libra token, later renamed Diem, was shut down in 2022 due to regulatory scrutiny.