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Meta-Backed Diem Association Winds up Amid Regulatory Hurdles

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Cryptocurrency initiative Diem Association plans to dispose of its assets and return funds to investors after facing regulatory pressure.

Source: Bloomberg

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Diem, once called Libra, is engaging investment bankers on an ideal way to sell an intellectual property and relocate the engineers behind the technology.

The stablecoin idea hit regulatory obstacles when Mark Zuckerberg was called to testify, causing the partners to back off. It was then rebranded to Diem.

David Marcus, Diem founder, resigned from Meta in 2021, and the project was down-sized.

The firm signed a deal with Sivergate Capital to issue the stablecoins before Federal Reserve reigned in on the move.

Meta announced the stable digital token idea in 2019 in partnership with multiple firms aiming to change the financial service sector.

Meta owns a third of Diem with other investors: Andreessen Horowitz, Rabbit Capital, Union Square Ventures, and Thrive Capital.

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