Meta in Talks with Crypto Infrastructure Firms to Deploy Stablecoins for Creator Payments

TLDRMeta is exploring stablecoin integration for creator payouts across platforms like InstagramThe company is in preliminary talks with crypto infrastructure firms about using multiple stablecoins like USDT and USDCNew VP of Product Ginger Baker, who has fintech and crypto experience, is leading these initiativesThis marks Meta’s return to crypto three years after shutting down its Diem (formerly Libra) projectThe broader financial industry is embracing stablecoins, with companies like Stripe, Visa, and Fidelity entering the spaceMeta is quietly planning its return to cryptocurrency, this time with a focus on stablecoins for platform payments.According to multiple sources, Mark Zuckerberg’s company is exploring stablecoin integration to handle creator payouts across its platforms, particularly Instagram.The tech giant has held preliminary discussions with several crypto infrastructure firms in recent months. These talks center on using stablecoins – cryptocurrencies pegged to stable assets like the US dollar – to manage payments to creators and businesses globally.Meta’s interest comes three years after it abandoned its previous crypto project. The company’s earlier attempt, initially called Libra and later renamed Diem, faced intense regulatory pushback before being shut down in 2022.New Leadership Driving Crypto StrategyGinger Baker, who joined Meta in January as Vice President of Product, is spearheading these new crypto initiatives. Baker brings valuable experience from her previous roles at fintech company Plaid and her board position with the Stellar Development Foundation, a crypto organization that manages a blockchain.Under Baker’s guidance, Meta has reached out to multiple crypto infrastructure providers. The company appears to be taking a flexible approach and may adopt multiple stablecoins rather than partnering with just one provider.“Meta is in ‘learn mode,'” said one executive from a crypto firm who spoke with the company. This suggests the tech giant is carefully exploring its options before making firm commitments.Sources familiar with the matter indicate that Meta is particularly interested in stablecoins for their ability to facilitate cross-border payments. Traditional banking methods often involve high fees, especially for smaller transactions.For Instagram creators receiving modest payments – sometimes as low as $100 – stablecoins could offer a more cost-effective solution than wire transfers or other traditional banking methods.Growing Industry MomentumMeta’s renewed interest in cryptocurrency comes as stablecoins gain traction across the financial industry. The market capitalization for stablecoins has now surpassed $230 billion, reflecting their growing adoption.Several major financial players have recently made moves in the stablecoin space. Stripe launched stablecoin-based accounts in over 100 countries, while Visa invested in stablecoin startup BVNK and partnered with infrastructure provider Bridge.Fidelity, Ripple, and other financial firms are also developing their own stablecoins or entering the market. Standard Chartered has projected the stablecoin market could grow by $2 trillion by 2028.This broader industry movement has created a more welcoming environment for Meta’s return to crypto. The election of Donald Trump, who has shown more openness to cryptocurrency than his predecessor, may also be influencing the timing.Regulatory Challenges RemainDespite growing adoption, regulatory clarity around stablecoins remains limited in the United States. A recent vote on the GENIUS Stablecoin bill failed in the Senate after Democrats withdrew their support.Treasury Secretary Scott Bessent described this stalled legislation as a missed opportunity to advance the dollar’s role in digital finance. However, the continued uncertainty hasn’t stopped new entrants like World Liberty Financial, a firm connected to President Trump, from launching USD1, which quickly became the fifth largest stablecoin by market cap.When asked about Diem at a recent Stripe conference, Zuckerberg acknowledged its failure, stating simply, “That thing’s dead.” However, he also noted that being early to tech trends is “more fun than being late” and that Meta is “pretty good at” clawing its way back into markets where it’s behind.Meta has declined to comment officially on its stablecoin plans. The talks remain in early stages, with no final decisions made about which stablecoins or providers the company might work with.The post Meta in Talks with Crypto Infrastructure Firms to Deploy Stablecoins for Creator Payments appeared first on CoinCentral.