Facebook-led Crypto Project Diem to Be Sold Off for $200M: Report

Silvergate will reportedly pick up the tab for the Facebook-led Diem association’s off loading of its crypto tech

article-image

Source: Shutterstock

share
  • The Diem Association is reportedly selling off its crypto infrastructure for a sum of $200M
  • A holding company for crypto-focused bank Silvergate has picked up the ticket

Facebook’s brief foray into crypto is reportedly coming to a close.

According to a report by the Wall Street Journal on Wednesday, the Facebook-led Diem Association’s blockchain and crypto infrastructure is being sold off to a Californian bank for around $200 million.

Facebook, now known as Meta Platforms Inc., did not immediately respond to Blockworks’ request for comment.

The bank, Silvergate Capital Corp., previously reached a deal with Diem to issue the association’s stablecoin, but those efforts were blocked by the Federal Reserve, according to Bloomberg reporting.

Silvergate Capital is a holding company for its crypto-focused bank which provides financial infrastructure and services to digital asset participants.

The move is viewed as a means to return capital to its investor members. Facebook parent Meta Platforms Inc. owns around a third of the association, according to the reports. The other two-thirds belong to a consortium of the association’s members.

From the outset, the Diem project formerly known as Libra was derided and railed against over its plans to introduce a stablecoin — a crypto asset generally pegged to a commodity or fiat currency — to billions of users worldwide.

Meta unveiled the ambitious project back in June 2019, much to the chagrin of US regulators and politicians. The association was formed alongside payments giants PayPal, Stripe and Visa and also included a long list of some of the world’s largest companies.

Concerns were raised in Washington a month later when Facebook’s CEO, Mark Zuckerberg, had to explain to congress how the initiative wouldn’t undermine global finance. Following funding cuts to the project, as well as the Meta-owned Novi crypto wallet and regulatory pressure, development stalled.

Meanwhile, David Marcus, who oversaw Libra from the beginning as well as the development of Novi, quit Facebook in December citing a need to pursue his own personal projects.

[stock_market_widget type=”accordion” template=”chart” color=”#5679FF” assets=”FB” start_expanded=”false” display_currency_symbol=”true” api=”yf” chart_range=”1mo” chart_interval=”1d”]


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The goal, per Santiago Santos, is to make crypto a relatable piece of tech for people who may not even understand it

article-image

Stripe stablecoin unit aims to operate under a federal charter enabling regulated stablecoin issuance and custody services

by Blockworks /
article-image

Will TradFi make crypto better or create more problems than it solves?

article-image

Subtle decisions by risk curators saved Aave from significant turmoil

article-image

The new Rootstock Institutional unit aims to connect professional investors to Bitcoin-native yield and liquidity strategies anchored in BTC’s security layer

by Blockworks /
article-image

DOJ files record civil forfeiture against more than 127,000 BTC linked to scam activity

by Blockworks /