June 12, 2021

UPDATE 1-Facebook-backed crypto project Diem to launch U.S. stablecoin in major shift


(Adds Swiss regulator statement)

By Tom Wilson and Pete Schroeder

WASHINGTON, May 12 (Reuters) – Digital currency group Diem Association, formerly known as Facebook Inc’s Libra project, plans to launch a U.S. dollar stablecoin as it scales back its global ambitions to focus on the United States, the group said on Wednesday.

The association, which comprises 26 financial firms and non-profits, said it was relocating its main operations from Switzerland to the United States and withdrawing its payment system license application with the Swiss financial regulator.

Diem Networks U.S., a unit of the Deim Association, will run a blockchain-based payment system that allows real-time transfer of Diem stablecoins and will register as a money services business with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network, the group said.

Stablecoins are digital currencies pegged to a fiat currency. California-based Silvergate Bank will issue the Diem USD stablecoin and manage the…

Read the Whole Story