February 1, 2022
Silvergate Capital Corp announced on 31st January 2022 that it has agreed to buy Blockchain Payments Network and other intellectual property assets from Meta’s digital venture Diem Association.
Here’s what we know:
- Meta first unveiled plans for Diem (formerly known as Libra) in June 2019 in an effort to expand beyond social networking into e-commerce and global payments. This project faced opposition from policymakers globally and in the quest for regulatory approvals, leading Meta to rename its digital coin to Diem.
- Silvergate Bank operates the crypto-focused payments platform Silvergate Exchange Network which offers account holders the ability to execute real-time, 24/7 transfers amongst themselves. Other crypto trading platforms like Coinbase Global and Gemini are a part of the Silvergate Exchange Network.
- In an interview with CNBC, Alane Lane, CEO of Silvergate Capital, said: “We think the potential worth is off the charts when we think about using the blockchain technology for payments and remittance”.
- The assets acquired by Silvergate include development, deployment, and operations infrastructure and tools for running a blockchain-based payment network designed to facilitate payments for commerce and cross-border remittances.
- The Wall Street Journal reported last week that the bank paid about $200 million, citing an anonymous source. “It’s kind of the original promise of bitcoin, but folks don’t want to be spending their bitcoin with all that volatility. But the blockchain technology is here, and we think that’s what a Silvergate-issued stablecoin can provide,” said Lane.
- Silvergate is uniquely positioned to leverage this technology to further solidify its status as a leader in the digital currency industry.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.