Facebook in Search of $1B for Launch of Stablecoin According to Sources
Facebook has hinted at creating its own digital asset for WhatsApp usage, and now the firm is on the lookout for capital dedicated to this project.
Facebook may be in search for additional backers for its digital asset project, suggested Nathaniel Popper, technology reporter at New York Times, through his Twitter.
The otherwise cash-rich Facebook is said to be in search of up to $1 billion to back its stablecoin and develop the project. For now, the social media giant has been conservative when it comes to crypto assets, going as far as to ban cryptocurrency ads at one point. But last fall, Facebook suggested it is working on a stablecoin, choosing to add a digital asset without the inherent volatility.
Social media have seen unofficial usage of various coins and tokens for a long time. Coins such as DogeCoin (DOGE) and ReddCoin (RDD) have been sent by tipping bots, and even XRP saw a use case as a social media asset for video tipping. Newer projects like Verge (XVG) have also competed as an internet payment coin.
The idea of dollar-pegged stablecoins, however, has appealed to institutions such as JP Morgan, who would prefer a predictable valuation for the digital asset.
Within the crypto ecosystem, stablecoins are also highly important. However, new arrivals have managed to raise only a few hundred million dollars over the course of months. Tether (USDT) remains the leading and most influential dollar-pegged coin, with more than 2 billion coins in circulation. However, there are doubts that the issuers of USDT actually hold $2 billion to back the coin with cash.
Allegedly, Facebook works on its crypto coin in complete secrecy, with almost no details shared on the parameters of the asset.
Recently, a third party wallet was created that allowed the holding of digital assets within the WhatsApp ecosystem through the Wuabit wallet. Integrating digital assets within apps follows the trend for fintech apps and services that allow seamless micropayments and better convenience compared to using direct banking. However, digital assets promise an additional layer of innovation, speed, and security.