Silvergate Capital Purchases Diem Operations to Develop Own Stablecoin – Bitcoin News

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Silvergate Capital, a payments services company, has acquired Diem, the cryptocurrency formerly backed by Facebook, to integrate it into its operations.

operation. The deal includes the purchase of intellectual property and other technology assets related to running a blockchain-based payment network from the Diem Group, according to a press release.Silvergate Capital aims to leverage the acquired assets to issue a stablecoin of its own, with the support of a California-chartered and Federal Reserve member bank like theWe identified a need for a U.S.

dollar-backed stablecoin that is regulated and highly scalable to further enable them to move money without barriers. It remains our intention to satisfy that need by launching a stablecoin in 2022, enabled by the assets we acquired today and our existing technology.The acquisition, which valued Diem at $182 million, included the issuance of 1,221,217 shares of Class A common stock and $50 million in cash.

 

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