The Diem Association, a Meta-backed crypto project, is winding down and selling its technology to Silvergate Capital for $200 million, the Wall Street Journal reported on Wednesday.
Bloomberg first reported on Tuesday that Diem was interested in cashing out on its remaining assets as a way to return capital to investors, but that sale discussions were still in early stages. The appearance of a buyer could signal a clear end to Meta's ambitious crypto project.
Diem, originally known as Libra, was founded by Facebook in 2019 and wanted to create a stablecoin linked in value to fiat currencies. The project drew worldwide scrutiny from regulators, leading backers to drop from the project as Mark Zuckerberg was called before Congress to defend it in 2019.
The association had announced in May that Silvergate Bank, a subsidiary of Silvergate Capital, would be the issuer of its currency, but Diem's coin never launched, and Meta introduced a crypto wallet last year without Diem's involvement. Now it appears that Diem partner Silvergate, which serves several customers in the crypto space and has signaled its ambitions to issue a stablecoin, will carry on what remains of the project.