Meta joins the battle for stablecoins, and micropayments become a new battleground

Author: Cryptoslate

Compilation: Blockchain Knight

Meta is exploring stablecoin-based payment infrastructure, reiterating efforts to integrate blockchain technology into its platform, Fortune magazine reported on May 8, citing sources familiar with the matter.

According to the report, the tech giant is in preliminary discussions with several crypto asset companies to assess the feasibility of using stablecoins as a means of managing cross-border payments.

The discussion touched on use cases such as creator payouts on Instagram, where stablecoins could offer a lower option than fiat-based transfers.

According to an executive at a crypto asset infrastructure company, Meta is currently in the "learn and understand" phase and has yet to select a specific stablecoin provider.

The company declined to comment on the matter.

Previous attempts

Meta's latest move follows a high-profile but unsuccessful launch of a stablecoin called Project Libra (later renamed Diem) in 2019. The project aims to build a global payment network backed by a basket of fiat currencies.

However, the project was terminated due to regulatory pressure from U.S. lawmakers, and Silvergate Bank acquired Diem's assets.

Ginger Baker, who joined Meta in January this year as VP of product, is reportedly leading Meta's new stablecoin project. Baker has experience at Plaid, a fintech company, and currently serves on the board of directors of the Stellar Development Foundation, which oversees the Stellar blockchain.

Meta launched the move at a time when the United States is seeking full recognition and regulation of stablecoins, which are seen as digital representations of the U.S. dollar.

Fidelity Investments recently revealed that it is testing a stablecoin, while payments giant Visa plans to launch a platform to tokenize fiat currencies. Bank of America has also hinted at plans to launch its own stablecoin once the regulatory environment becomes clearer.

Industry Engagement and Personnel Changes

Meta has begun engaging with crypto asset infrastructure companies in 2025, with early discussions focused on stablecoins as a tool to reduce the cost of international payments, sources said.

According to three people with knowledge of the sessions, the focus is on micropayments, especially for content creators and digital freelancers operating in multiple markets.

USDC's publisher Circle reportedly approached Meta through Matt Cavin, a former executive at gaming blockchain startup Immutable, who joined Circle in March of this year.

Meta CEO Mark Zuckerberg acknowledged the failure of the Diem project during a Stripe meeting earlier this week, saying the project has come to an end.

Zuckerberg added that while Meta tends to be a leader in adopting new technologies, it has also had to re-enter markets that have exited due to premature positioning or headwinds.