Silvergate Capital has strengthened its growth with the acquisition of intellectual property Facebook’s blockchain-based payment network the Diem Group.
It’s a move that enhances the group’s platform and deepens its existing stablecoin infrastructure.
Alan Lane, Chief Executive Officer of Silvergate, commented: “In the digital asset industry, money moves across the globe around the clock. Through conversations with our customers, we identified a need for a U.S. dollar-backed stablecoin that is regulated and highly scalable to further enable them to move money without barriers.
“As previously stated on our Q4 2021 earnings call, it remains our intention to satisfy that need by launching a stablecoin in 2022, enabled by the assets we acquired today and our existing technology.”
As part of the collaboration with Diem, Silvergate has gained elevated familiarity with the network and developed a strong appreciation for its potential to enable a Silvergate-issued stablecoin.
Lane added: “We are grateful to Diem and the community of engineers and developers who created this technology and have advanced it to its current evolution.
“Silvergate is committed to continuing to foster the open-source community that supports the technology, and we believe that existing contributors will be excited about our vision going forward.”
Stuart Levey, CEO of Diem, stated: “I’m tremendously proud of the efforts of our members, partners and teams who have worked tirelessly to develop the Diem Payment Network with robust controls to protect consumers and combat financial crime. We have confidence in Silvergate’s ability to take Diem’s technology forward and transform the future of payments.”
