Facebook backed Diem, the crypto ‘stablecoin’ venture formerly known as Libra, is reportedly being bought out by digital finance specialist Silvergate Capital for US$200mln.
Silvergate is set to acquire the Diem technology from The Diem Association, according to a Wall Street Journal report, citing an unnamed source.
A separate earlier report, by Bloomberg on Tuesday, which said that investment bankers were in talks to buy the intellectual property and Diem would turn the proceeds back to its investors.
Silvergate previously agreed to partner The Diem Association to jointly work on a digital asset to mimic the value of a US dollar, otherwise known as a ‘stablecoin’ – which are used mainly by traders as a harbour from crypto volatility or if they want to hold dollar equivalent values whilst remaining in digital money.
The venture has been under the spotlight of regulators and policymakers for some time has failed to launch in the two years since it was unveiled by Mark Zuckerberg’s social media conglomerate, then known as Facebook.
At that time Diem had a different name too. Under the Libra moniker the project was intended to be a ‘peg’ across a basket of real world (of fiat) currencies but that plan came under regulatory scrutiny and was relaunched under the Diem name in late 2020.