Share this article
Diem Confirms Shutdown as Silvergate Acquires the Project's Assets
Facebook (now Meta) is officially winding down the stablecoin project it announced in June 2019.
By Nikhilesh De
Updated May 11, 2023, 7:10 p.m. Published Jan 31, 2022, 10:10 p.m.
The Diem Association is shutting down.
Silvergate Bank confirmed Monday that it's purchasing the technology and other assets from Diem, the stablecoin project from Meta Platforms (formerly Facebook) first announced as Libra in June 2019.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In a statement Monday, the Diem Association said it would “begin the process of winding down” both the group and its subsidiaries over the next few weeks.
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 remittances and other applications.
It described Diem’s work as running “in a pre-launch phase.” Diem has faced stiff regulatory headwinds since it was first announced in June 2019. Rumors that Diem was looking to sell its assets to repay investors have been swirling since last week.
Read more: Diem Mulling Sale of Assets to Pay Back Investors: Report
In Diem’s statement, CEO Stuart Levey said, “a senior regulator informed us that Diem was the best-designed stablecoin project the U.S. Government had seen.”
But he added that “it became clear” from the group’s conversations with federal regulators that they would not be able to launch Diem.
Silvergate said it issued $132 million in Class A common shares and paid an additional $50 million in cash to acquire the assets. At press time, Silvergate’s share price was trading at $107.74, up 13.4% on the day.
Silvergate partnered with the Diem Association last year to try to launch a dollar-backed stablecoin. Under the terms of that arrangement, Silvergate would both manage the reserves and issue the stablecoin itself. That planned pilot program reportedly met with resistance from federal banking regulators.
In a statement, Silvergate CEO Alan Lane said his bank is “committed to continuing to foster the open-source community that supports the technology, and we believe that existing contributors will be excited about our vision going forward.”
He said his bank found a need for a dollar-backed stablecoin that is both “regulated and highly scalable.” Silvergate intends to launch such a stablecoin by the end of the year.
UPDATE (Jan. 31, 22:22 UTC): Adds information, changes headline.
UPDATE (Jan. 31, 22:27 UTC): Adds comment from Diem Association CEO Stuart Levey.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Crypto Investment Firm Blockstream to Acquire TradFi Hedge Fund Corbiere Capital
The planned deal will bring Corbiere’s equity and event-driven strategies under Blockstream’s asset management arm.
What to know:
- Blockstream plans to acquire Jersey-based hedge fund Corbiere Capital Management for an undisclosed amount.
- Corbiere founder Rodrigo Rodriguez will become CIO of Blockstream Capital Management, a new asset management unit.
- Komainu, a Blockstream portfolio company, will handle custody, connectivity and off-exchange collateral management.
Top Stories
