Meta Plots Crypto Reboot—Stablecoins Take Center Stage After Diem’s Spectacular Flameout
Three years after its ill-fated Diem project collapsed under regulatory scrutiny, Meta is doubling down on crypto—this time with stablecoins in its crosshairs.
The tech giant’s rumored pivot follows a familiar Silicon Valley playbook: fail fast, rebrand faster, and hope regulators aren’t paying attention this time around.
Wall Street skeptics whisper this could be another ’metaverse moment’—a costly distraction from Meta’s core ad business. But in crypto circles, the move signals Big Tech’s unwillingness to cede the financial revolution to startups.
One hedge fund manager quipped: ’At least stablecoins won’t require those embarrassing legless avatars.’
Meta Re-Enters the Stablecoin Arena
According to Fortune, Meta is in preliminary discussions with several cryptocurrency companies to explore stablecoin applications. Meta is focusing on cross-border payments for content creators to reduce costs.
Meta first garnered attention in the crypto space in 2019 with its Libra project, later renamed Diem, a stablecoin designed to facilitate global payments.
However, the initiative was halted in 2022 due to regulatory pressure and opposition from authorities. After three years of silence, Meta is returning with a fresh approach, emphasizing using stablecoins for cross-border payments to content creators on its platforms.
Fortune reports that Meta’s goal is to lower transaction costs, often high with traditional payment methods like SWIFT. The company’s collaboration with crypto firms suggests that Meta may be considering integrating existing stablecoins rather than developing a new one, as it did previously.
The appointment of Ginger Baker, a former Plaid executive, as Vice President of Product since January 2025, further solidifies Meta’s determination to reposition itself in the cryptocurrency market.
Will Meta Succeed with Its New Strategy?
Meta’s new approach could enable the company to quickly tap into the growing stablecoin sector. However, significant uncertainties remain due to the regulatory framework surrounding stablecoins in the US.
Although the OCC recently confirmed that US banks can provide crypto custody services to clients, the stablecoin sector, in particular, still faces numerous challenges.
In a post on X, Coinbase CEO Brian Armstrong stated that the GENIUS Act stablecoin bill in the US still requires revisions, particularly criticizing the prohibition on yield as unreasonable.
“Frankly, the bill still needs some work (like fixing the prohibition on yield and interest which makes no sense). But this is all part of the process,” Armstrong said.
The bill failed to pass in the Senate, with a vote of 48-49, as Democratic Senators accused President TRUMP of having a conflict of interest related to cryptocurrency.
Senate Democrats added a symbolic amendment to the GENIUS Act to push for its passage despite strong opposition. This reflects the caution of US regulators toward stablecoins.
Meta’s Next Moves
Based on these developments, Meta’s next strategy may focus on partnering with established stablecoin providers to avoid the regulatory hurdles it faced with the failed Diem project. Such integrations could allow the company to swiftly roll out cross-border payment services without the legal problems of issuing a new stablecoin.
Additionally, Meta is likely to accelerate the integration of stablecoins into platforms like Instagram and WhatsApp, where millions of content creators are active. Using stablecoins for payments could reduce transaction fees to only cents per transaction, attract more creators, and increase their reliance on Meta’s ecosystem.
Meta’s re-entry into the stablecoin arena demonstrates its long-term vision to integrate cryptocurrency into its ecosystem. However, the uncertain regulatory situation in the US and beyond will be critical to its success.
