The organization Diem Association is negotiating the sale of assets and the transfer of capital to investors, writes Bloomberg.
The group is contacting investment banks in an attempt to dispose of its intellectual property and is looking for new places for developers, the publication says. Negotiations are ongoing, and there are no guarantees that Diem will be able to find a buyer.
Diem was announced by Facebook under its former name Libra in June 2019 as part of an ambitious plan to create a means of payment for use in the company's applications and beyond. Initially, the project received the support of the largest financial companies, including Visa, PayPal and Mastercard.
At the same time, the initiative faced a sharp rejection of the authorities in many countries of the world, which is why a number of the original participants of the project withdrew from it. In addition, the organizers of Diem were forced to abandon the stablecoin, provided with a basket of traditional currencies, in favor of several stablecoins, each based on a separate currency. It was assumed that this option would be more acceptable for regulators. In December 2020, the project was rebranded to move away from the unfavorable image.
In August, it became known that Meta may switch to another provider of stablecoins instead of Diem for its Novi cryptocurrency division. At the same time, the authorities criticized Novi's new, much less ambitious plan to test a wallet with Diem support. Also in 2021, due to the intervention of the Fed, plans for cooperation with the cryptocurrency-friendly Silvergate Bank were disrupted, and the head of Meta cryptocurrency initiatives, David Marcus, left the company in November.