Mark Zuckerberg-led Meta is looking to re-enter the stablecoin space this year now that the GENIUS Act has laid out clear regulations to oversee these digital assets. As per reports, the social networking giant has circulated a request for product to third-party payment firms seeking solutions to administer stablecoin payments.
Meta is eyeing the launch of a new wallet service by the second half of this year, somewhere between June and December.
The Menlo Park, California-based company is looking to onboard a vendor to process stablecoin payments with integration with its wallet.
As per reports, Stripe is among platforms that Meta has reached out to, said media reports citing sources familiar with the matter. It is noteworthy that Stripe CEO Patrick Collison joined Meta’s board of directors in April last year.
Meta — that has WhastApp, Instagram, and Facebook under its umbrella — reportedly caters to over 3.5 billion users in the world. If Meta does launch its stablecoin, it will straight away get infused into Meta’s vast userbase.
For now, the potential name of the stablecoin and Meta’s wallet initiative remains undisclosed.
This, however, would not be the first time that Meta will be exploring the stablecoin sector. Earlier in 2019, the company had debuted its Libra stablecoin, that was later rebranded to Diem.
The company had to abandon development in its stablecoin initiatives owing to the regulatory scrutiny. Regulators, at the time, had expressed concerns that Meta could get excessive dominance over the U.S. financial ecosystem that could weaken the USD position globally.
Last year, U.S. President Donald Trump’s government finalized the stablecoin-focused GENIUS Act. It essentially lays down the foundational groundwork, defining the safety and transparency parameters. It mandates stablecoin issuers to maintain 1:1 reserves with reserve assets, monthly audits, and compliance with anti-money laundering and know-your-customer standards.
In the last six months, Wall Street giants like Wells Fargo, Bank of America, Citigroup, and JPMorgan have rolled-out stablecoin-related services owing to their growing popularity among federal and corporate financial fabric.