Confirmed: Facebook sold its digital currency project to an American bank

After much speculation and some rumors in the media around the world, an American bank has finally confirmed that it has fully acquired the Facebook digital currency project. The Diem Association has also said it will begin the process of dissolving the group in the next few weeks.

To Report Kevin Desk, of Silvergate Bank in the United States, confirmed Monday that it will buy the technology franchise and other assets of the Daym project. The theme of the StableQueen project was the former Meta collection, or Facebook, which was first introduced in June 2019 under the name Libra.

In a statement issued Monday, the Dayem Association said it would begin the process of dissolving the group and its subsidiaries in the next few weeks.

Silvergate also said in a press release late Monday that it was acquiring DIM development, deployment and operations tools, as well as tools “to set up a blockchain-based payment network” for money transfers and other applications.

The bank described the work of the Diem Association as an activity “in the pre-launch phase” of the project. Diem has faced strong opposition from regulators since it was first unveiled in June 2019. Rumors have been circulating in the media since last week that the Dayem Group is seeking to sell its assets to repay investors.

Stuart Levey, CEO of Dayem Collection, recently announced in a statement:

A senior regulator has told us that Dayem is the best Stable Quinn project the US government has ever encountered.

He added that they had concluded from talks with government regulators that their team was not allowed to launch Deyim.

Silvergate has said it has issued $ 132 million worth of Class A shares and paid $ 50 million in cash to buy the Dayem project.

Class A stocks are actually a form of stock that is not publicly traded on the stock market. Holders of this form of stock can not trade it with other persons and have more voting rights than “B” class shares.

Silvergate is currently trading at $ 107.74 per share and has risen about 13.4% in the last 24 hours.

Also read: Completion of Facebook Digital Currency Project; Zuckerberg has not yet stepped aside

Silvergate partnered with the Dayem Association last year to launch a stable dollar coin. Under the terms of the deal, Silvergate, in addition to managing reserves, was to release the StableCoin itself. According to reports, this trial version has faced resistance from regulatory and banking institutions.

“Alan Lane, CEO of Silvergate, said in a statement:

[بانک ما] We want to continue to strengthen the gaming community that supports this technology, and we believe that current participants will be thrilled by our vision for the future.

Lane added that SilverGate needed a dollar-backed stable coin to be “both legal and highly scalable.” Silvergate plans to launch this stable coin by the end of the year.