Silvergate Is Acquiring the Diem Stablecoin Technology from Meta Platforms. What Now?
In 2021, the crypto bank Silvergate Capital (NYSE: SI) announced a blockbuster partnership with Meta Platforms (formerly Facebook) to become the exclusive issuer of the social media giant's planned U.S. dollar-backed stablecoin, Diem. Stablecoins are digital assets pegged to a currency or commodity. Now, however, Silvergate has announced that it plans to acquire the technology assets of Diem for $182 million in a cash-stock deal, with plans to integrate the technology into Silvergate's existing platform. Let's take a look at where things now stand with Diem and Silvergate's stablecoin ambitions.
Silvergate Capital is a bank, but its business is driven by its real-time proprietary payments system called the Silvergate Exchange Network (SEN), which enables multiple parties on the network to instantly clear and settle transactions at any time. The network's main use right now is to better facilitate cryptocurrency trading between institutional traders and crypto exchanges because the U.S. doesn't currently operate on a real-time payments system, while cryptocurrencies never stop trading.
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Source Fool.com
