Silvergate Capital acquires the operations to develop its own stablecoin -
Silvergate Capital acquires the operations to develop its own stablecoin -
Silvergate Capital, an investment company that is the parent company of Silvergate Bank, acquired the technology and assets of Diem, the StableCoin payment system, formerly supported by Facebook. Payment amounted to a total of $ 182 million. The acquired technologies and assets are reportedly used for the introduction of a Silvergate stable coin.
Silvergate acquires the operations
Silvergate Capital, a payment service company, has Diem, a stable co-payment system that was originally started by Facebook (now Meta) to integrate it into its company. The announcement was made on January 31, when the company was the details of the Operation. According to a press release, the deal includes the purchase of intellectual property and other technology values in connection with the operation of a blockchain-based payment network from the DIEM group.
Silvergate Capital to use the acquired assets to use the Federal Reserve, which is chartered in California and a member bank, such as the STABLECOIN Silvergate-Bank , a subsidiary of the company. The company explained:
We have found a need for a US dollar-supported stablecoin, which is regulated and highly scalable to enable them to move money without obstacles. It remains our intention to satisfy this need by introducing a stable coin in 2022, which is made possible by the assets acquired today and our existing technology.
The acquisition, which DIEM rated $ 182 million, included the issue of 1,221,217 class A and $ 50 million in cash.
New goals in sight
diem, which was originally called Libra, confronted Opposition by regulatory authorities, which are concerned about his make original conception. However, some believe that this vision under the direction of a licensed bank institute could change. This is the opinion of Alan Lane, CEO by Silvergate Capital. The executive would satisfy different needs. Lane explained:
We believe that the potential value is exceptional if we think about the use of blockchain technology for payments and transfers.
lane further explained that this stable coin for "people to pay things" and was not designed for trade purposes. Silvergate currently has a company called Silvergate Exchange Network, in which StableCoin emitters can create and redeem their own stable coins. The executive compares this application with the original idea of Bitcoin, but without the volatility that is characteristic of the first crypto asset, which can harm consumers and dealers that use it for payments.
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