Meta is exploring the use of stablecoins to manage payouts for international creators, according to a report. Meta CEO Mark Zuckerberg’s firm is said to be in discussions with crypto firms as part of the company’s plans to begin using stablecoins in partnership with a number of crypto firms. For now, these discussions are said to be at a preliminary stage. Stablecoins are crypto assets that are pegged to reserved assets like fiat currencies in a 1:1 ratio.
Considered safer than other digital assets in terms of exposure to market volatility, stablecoin values are derived from the underlying assets. Tether (UDST) and Circle (USDC) are two of the largest stablecoins available in the market as of May 9.
Meta initiated stablecoins-related discussions with the crypto players earlier this year, according to a Fortune report that cites five unnamed sources aware of the company’s plans. The publication states that the Facebook parent firm is still in “learn mode”.
As part of its plans, the company may integrate these stable tokens with Instagram to issue creator payouts of up to $100 (roughly Rs. 8,550) to creators on the platform.
Through the use of stablecoins, Meta expects to simplify payouts to the creators using its platforms from various locations around the world. This could help the company dodge the higher processing fee that are levied on other payment modes, like wire transfers of fiat currencies.
The company is currently in the process of adding crypto-experienced individuals to its teams to assist in its stablecoin plans, as per the report.
In 2019, the company unveiled its now-defunct Libra project that aimed to create a network to facilitate global stablecoin payments. However, owing to the regulatory scrutiny over crypto during former US President Joe Biden’s administration, Meta ended the project in 2022.
It is unclear whether Meta also plans to explore the launch of its own stablecoin infrastructure in the future.
The company continues to work on research and development related to metaverse initiatives through its Reality Labs unit. In the fourth quarter of 2024, Reality Labs posted $5 billion (roughly Rs. 42,757 crore) in losses.
Accor has announced the signing of Fairmont Rishikesh, Himalayas, with the luxury resort scheduled to…
Audi sales have been in a slump for the last two years. Dealers have been…
Deep brain stimulation (DBS) can reduce movement problems caused by Parkinson's disease, and new research…
More than 15 million people may now have a very personal problem: their dental, government…
Asset World Corp Public Company Limited (AWC), Thailand’s leading integrated lifestyle real estate group, is…