Meta's Crypto Project Is Closing. Here's What Investors Need to Know

Earlier this year, Meta Platforms (NASDAQ: META) sold off its holdings in Diem Association -- the cryptocurrency project it had been working on the last few years with other tech and digital payments companies. Crypto bank Silvergate Capital (NYSE: SI) was the buyer of the Diem assets, but it was still unclear what would become of Meta's Novi digital wallet.

One year after beginning a pilot program, it looks like Novi is now closing up shop and will no longer be available for use after Sept. 1, 2022. Basically, all of Meta's financial value is derived from advertising (and a little from virtual reality), so Novi's closure will be immaterial to the bottom line. But it's still a temporary setback for the company and its aspirations to build a full-blown digital economy to accompany its apps. Here's what shareholders need to know.

Diem Association (previously known as Libra) was a cryptocurrency project partnership. It was backed by Meta and some other tech companies as it developed a digital payments system using blockchain technology -- the same digital ledger software employed by cryptos like Bitcoin and Ethereum.

Source Fool.com