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After the Diem Purchase, Silvergate Capital Plans to Launch its Stablecoin


During a CNBC program, Silvergate Capital CEO Alan Lane noted that the organization will launch a stablecoin later this year. Silvergate Stablecoin Silvergate CEO Alan Lane revealed that his company plans to launch a stablecoin through its banking subsidiary Silvergate Bank during his interview on CNBC’s “Mad Money” program hosted by Jim Cramer. Earlier in the day, the banking organization confirmed it is acquiring Diem Association’s IP, assets and technology for $132 million in stock and $50 million in cash. “With today’s sale, Silvergate will be well placed to further develop this vision. In the coming weeks, the Diem Association and its subsidiaries expect to begin the phase-out process, but we look forward to seeing Diem’s ​​design choices — and ideals — thrive,” Levey hinted at the future of Diem stablecoin in a new avatar. In the interview with Cramer, Lane said that Silvergate wants stablecoins to be used in everyday situations and not just for trading.Speaking of the real value of Diem stablecoin, Lane said: “We think the potential value is off the charts if we Thinking about using blockchain technology for payments and remittances.” Zuckerberg’s Digital Coin Dream Finally Over Meta CEO Mark Zuckerberg’s dream of owning his cryptocurrency is finally over with the sale of Diem Associates, formerly Lira, for about $200 million to the crypto-focused bank Silvergate, the ambitious initiative that started in 2019 after meeting some twenty investors in Geneva, faced opposition from regulatory authorities, particularly from US watchdogs. “Despite receiving positive substantive feedback on the design of the network, it became clear from our dialogue with federal regulators that the project could not progress. As a result, the best way forward was to sell the Diem Group’s assets, as we did to Silvergate today,” Diem Network CEO Stuart Levey said in a press statement on Monday. Diem was working in a pre-launch phase and Silvergate has acquired the assets, tools and critical proprietary software related to the development, implementation and tools. A tumultuous year for Diem The past year was very tumultuous for Diem. In April 2021, reports suggested that Facebook’s stablecoin will be available in the market by the end of 2021. In May, Diem moved his headquarters from Switzerland to the US after forging a strategic partnership with Silvergate Bank. In August, digital wallet chief Novi and Diem Association board member David Marcus revealed in a blog post that the payment system had been licensed in nearly all US states. Despite renaming the brand from Libra to Diem and changing its overall focus to serve as one global payment method, the project has generally failed to deliver on its great promise. SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and get $100 Free and 10% Off Fees on Binance Futures First Month (Terms and Conditions). PrimeXBT Special Offer: Use this link to register and enter POTATO50 code to get 25% off trading fees.
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