Friday, October 7, 2022

Meta-Backed Diem Project Officially Shuts Down After Assets Sales to Silvergate Corp

In an official statement on the Twitter handle of Diem Association on Monday, the former secretary of Terrorism and Financial Intelligence in the US Department of the Treasury, Stuart A. Levey, now CEO of the stablecoin project Diem, declared to the public that the blockchain-based stablecoin and payment platform is shutting down.

The assets of the Diem startup, formerly known as the Libra association has been sold to Silvergate Capital Corporation, a holding company for Silvergate Bank, which is a provider of financial architecture services to participants in the rapid growth digital currency industry.

After two years of attempting to establish digital money, Meta, formerly Facebook, withdrew from further investment in the Diem project.

In the statement published on the sale of the Diem Group’s assets to the financial services firm, the Diem’s boss communicated the essence for designing the payment platform, one of which he expressed in his own words;

“One of our highest priorities in designing the Diem Payment Network was building in controls to protect it against illicit actors. We addressed that concern in ways that are novel in the industry, implementing numerous controls that were recognized as innovative by regulators. Among these controls was a prohibition on anonymous transactions, which pose both a sanction and money laundering risk”.

To also inform the public on procuring the assets of Project Diem, a tweet on the official account of Silvergate Bank reads;

“We are pleased to announce that we have purchased blockchain payment network assets from @DiemAssociation! The Acquisition is an investment in our platform and enhances our existing stablecoin infrastructure initiative”.

It is worthy of note that under the terms of the asset purchase agreement, the financial services provider issued 1,221,217 shares to Diem and also paid $50 million in cash. And based on the closing price of SI on January 31, 2022, the aggregate value of the consideration was $182 million. 

Moving forward, Silvergate has great hopes of launching its own payment platform with upgraded designs on the already acquired assets from the Diem Association

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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