In a significant move, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to a limited number of creators, marking a resurgence of crypto-based payments after the company previously abandoned its Libra project. Currently, this feature is accessible to a select group of creators in Colombia and the Philippines, as per the information available 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 networks. This service is facilitated by 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.
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 assistance from third-party vendors to administer stablecoin payments on its platforms, with Stripe being a leading contender for integration. By embracing stablecoins for real-world payments, Meta joins the ranks of large tech firms leveraging blockchain technology to facilitate global transactions without relying on traditional banking systems.
Stablecoins, whose prices are pegged to fiat currencies, are increasingly recognized 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, experiencing a 50% growth in a quarter. This initiative marks Meta's re-entry into the stablecoin space after its previous attempt to introduce the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.