- Meta is weighing integrating stablecoins into its family of social media platforms, including Facebook, Instagram, and WhatsApp.
- A company spokesperson stressed that the company has no plans to issue its own stablecoin after previous crashes with regulators.
Social media giant Meta is exploring how it can integrate stablecoins into its vast social media platforms, sources with knowledge of the matter have revealed.
Speaking to one crypto news outlet, one of the sources revealed that the companys stablecoin plan centers around a partnership with a third-party that would handle the heavy lifting. The project is set to begin early in the second half of the year as Meta races to compete with Telegram and X, which have both announced plans to integrate payments into their apps.
Telegram already has the closely-linked TON network, which supports most major stablecoins like USDC and $USDT, making integration easier.
Speaking to a separate outlet, another source revealed that Meta has already issued a request for product (RFP) to stablecoin processors as it evaluates the best candidate. The sources say Stripe is the most likely potential partner. Stripe CEO Patrick Collison is a member of the Meta board, and the company has integrated some of its payment services on Meta-owned apps, such as a ‘pay directly’ feature on WhatsApp.
Stripe has become a significant player in the stablecoin circles in recent months following the acquisition of Bridge in February last year for over $1 billion. Bridge offers infrastructure that enables businesses move money globally through stablecoins. It does not issue its own stablecoin, however.
Metas Second Try at Stablecoin Payments
Following the reports, Meta spokesperson Andy Stone reiterated the companys message that it does not plan to issue its own stablecoin. He stated:
“Nothing has changed; there is still no Meta stablecoin. This is about enabling people and businesses to make payments on our platforms using their preferred method.”
He added that the company already supports several currencies and payment methods globally, from digital wallets and instant account-to-account payments to national payment systems like India‘s UPI and Brazil’s PIX.
Image courtesy of Andy Stone.
Its not the first time the social media giant has been reported to be exploring stablecoins. Last year, Fortune Magazine claimed that the company was in discussions with crypto firms to introduce stablecoins to manage payouts, as we reported. It added that the company had hired a new vice president of product to lead the discussions. Stone dismissed the report, reiterating that the company is not developing a stablecoin.
Meta was among the first companies to recognize the vast market that stablecoins could unlock, back in 2019, when Tether‘s $USDT market cap was just $60 billion (it now stands at $183 billion). However, regulators argued that by issuing its own currency, then known as Libra, the company would be competing with central banks. It was also at the height of its scandal with Cambridge Analytica over illegal access to users’ accounts, which made regulators wary.
A rebrand to Diem and the signing of influential partners like Visa, Uber, and eBay were not enough to save the project, and in 2022, the company sold its stablecoin assets to Silvergate Bank.