In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to its creators, reviving its interest in cryptocurrency-powered payments after abandoning its Libra project. This feature is currently limited to a select group of creators in Colombia and the Philippines, as per a statement on Meta's website.
Eligible creators can link their cryptocurrency wallets to receive payouts in USDC, a stablecoin issued by Circle, on the Solana or Polygon blockchain networks. The payments firm Stripe is providing support for this service, including crypto-related reporting for users, and creators may receive tax documents from both Meta and Stripe related to their earnings and transactions involving digital assets. A spokesperson from Stripe 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 the assistance of third-party vendors to facilitate stablecoin payments on its platforms, with Stripe being a leading contender for this integration. By doing so, Meta, with its vast user base of over 3 billion across its social media platforms globally, becomes one of the largest tech companies to experiment with stablecoins for real-world payments, utilizing blockchain technology to transfer money globally without relying on traditional banking systems. Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are increasingly seen as a faster and more economical method of payment.
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 also 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.