Diem, the Facebook-backed digital currency, has withdrawn its application for a payment license in Switzerland.
Instead Diem is focusing its operations on the U.S., through a partnership with Silvergate Capital, whose Silvergate Bank will become the exclusive issuer of the Diem USD stablecoin. It is also moving its main operations from Switzerland to the U.S.
"This shift is consistent with Diem's initial strategic focus on the United States and reflects Diem's consideration of the evolving digital currency regulatory environment in the U.S.," Diem wrote in a blog post. Silvergate is a California-chartered bank.
It's the latest shift in the many iterations of the Diem project, formerly known as Libra. In August, David Marcus, the Facebook executive who spearheaded the creation of Diem, took on a new role at Facebook overseeing all of its payment products. He still oversees Novi, a Facebook subsidiary which is working on a digital wallet for Diem.
Tomio Geron (
@tomiogeron) is a San Francisco-based reporter covering fintech. He was previously a reporter and editor at The Wall Street Journal, covering venture capital and startups. Before that, he worked as a staff writer at Forbes, covering social media and venture capital, and also edited the Midas List of top tech investors. He has also worked at newspapers covering crime, courts, health and other topics. He can be reached at email@example.com or firstname.lastname@example.org.