Silvergate Bank confirmed Monday that it’s purchasing the technology and other assets from the Diem Association, the stablecoin project from Meta (formerly Facebook) first announced in June 2019.
Silvergate announced in a press release late Monday that it is acquiring Diem’s development, deployment and operations tools, as well as tools “for running a blockchain-based payment network” for crypto payments and remittances. The statement confirms earlier reporting by the Wall Street Journal.
The statement described Diem’s work as running “in a pre-launch phase.” Diem has faced regulatory headwinds since it was first announced as the Libra project in June 2019. Rumors that Diem was looking to sell its assets to repay investors have been swirling since last week.
This is a developing story and will be updated.