Meta Considers Stablecoin Payments for Creators After Diem Project Halt

Highlights:

• Meta is in early talks to use stablecoins to pay creators across its social platforms.
• Companies like Stripe and Visa have launched new stablecoin services for their users.
• The US Senate failed to advance the GENIUS Act, which aimed to support stablecoins.

Meta has started early discussions with several cryptocurrency firms as it revisits stablecoin payment options for its platforms. The company aims to support small-scale cross-border payouts, especially for creators on Instagram, according to people familiar with the matter. These talks remain at a preliminary stage, and Meta has not selected any service providers yet.

"According to five sources familiar with the matter, @Meta is in discussions with crypto firms to introduce stablecoins as a means to manage payouts, and has also hired a vice president of product with crypto experience to help shepherd the discussions." pic.twitter.com/vygflLha5S

— Mike Dudas (@mdudas) May 8, 2025

Meta is considering various stablecoins, and the company may adopt a different approach of using many stablecoins. A crypto infrastructure executive involved in the discussions said Meta continues to evaluate options without committing to a specific provider. The company’s focus is to lower transaction costs and improve payout speed in markets where traditional systems are slow or expensive.

This is a new attempt following Meta’s previous venture to release a global stablecoin by the name Libra in 2019. The stablecoin to be launched was rebranded as Diem and was to be backed by various national currencies. Nevertheless, the project closed down after lawmakers pushed back, and Diem’s assets were later sold to Silvergate Bank.

The new effort to establish a stablecoin will be led by Ginger Baker. She joined the company in January as Vice President of Product and brings prior experience from Plaid. In addition, she was also a board member of the Stellar Development Foundation.

Meta has continued to reach out to crypto infrastructure providers all through 2025, and efforts have been in place to develop tools that facilitate creator payments and small international transfers. The firm perceives stablecoins as a viable service for creators and freelancers working in different countries. One of the conversations reportedly includes Circle, with former Immutable executive Matt Cavin leading those discussions on Circle’s side.

Fintech Industry Sees Surge in Stablecoin Adoption

Other financial companies have also taken steps toward stablecoin services. On May 7, Stripe launched stablecoin-based accounts for users in over 100 countries. These accounts allow customers to hold balances in stablecoins, transfer funds, and withdraw to traditional bank accounts in local currencies.

Visa announced on the same day that it invested in stablecoin firm BVNK. According to Rubail Birwadker, Visa’s head of products and partnerships, stablecoins now hold a growing share in the payments space. Fidelity has begun testing a stablecoin of its own, and Bank of America may launch one as well, depending on market readiness.

In March, World Liberty Financial introduced USD1, a stablecoin pegged to the US dollar and supported by allies of Donald Trump. By May, USD1 had become the seventh-largest stablecoin by market capitalization, showing strong demand for dollar-backed digital tokens.

Congress Blocks Key Stablecoin Bill Amid Meta’s Shift

While companies expand stablecoin offerings, lawmakers have failed to move forward on formal oversight. On May 8, the U.S. Senate voted against opening debate on the GENIUS Act. The final count fell short by one vote, ending progress on the bill for now.

My statement after the Senate failed to advance the GENIUS Act. pic.twitter.com/lARFxCPEg9

— Senator Cynthia Lummis (@SenLummis) May 8, 2025

Senate Democrats raised concerns about possible risks tied to stablecoins from foreign issuers. The bill had earlier passed the Senate Banking Committee but did not reach the needed 60 votes. Meanwhile, Treasury Secretary Scott Bessent criticized the decision, saying on X that the Senate missed an opportunity to support the dollar through digital tokens.

For stablecoins and other digital assets to thrive globally, the world needs American leadership.

The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.

This bill represents a once-in-a-generation opportunity to expand dollar…

— Treasury Secretary Scott Bessent (@SecScottBessent) May 8, 2025