20 July 2026
Facebook backed Crypto Project Diem Discloses Its New Launch Plans
Diem, the cryptocurrency project headed by Facebook, formerly Libra, announced its plans to launch a stablecoin with its focus shifted to the United States.
Earlier this year, the company had hinted that it would be relocating its primary operations from Switzerland back to the United States and would also withdraw its payment system license application from Switzerland’s financial regulators.
“Diem is simplifying its plans for [its] USD stablecoin issuance by shifting its main operations from Switzerland to the United States,” they announced.
Stablecoins are digital currencies pegged to a fiat currency like Tether (USDT) and USD Coin (USDC). Diem has partnered with California-based Silvergate Bank for managing its dollar reserves. This strategic partnership will include a new subsidiary called Diem Networks US which will run the Diem Payment Network (DPN) to facilitate transactions of Diem stablecoins within its network.
“Silvergate is a leader in financial innovation and an ideal partner for Diem as we move forward with a blockchain-based payment system that protects consumers and enhances the integrity of the financial system,” Stuart Levey, chief executive officer of Diem, said.
“We are committed to a payment system that is safe for consumers and businesses, makes payments faster and cheaper, and takes advantage of blockchain technology to bring the benefits of the financial system to more people around the world. We look forward to working with Silvergate to realize this shared vision.”
Diem’s strategic shift to the US comes at a time of a rapidly evolving regulatory environment for cryptocurrencies and blockchain technology. Some states such as Miami and Wisconsin have embraced the recent innovation, whereas the newly-appointed SEC Chair Gary Gensler has criticised the autonomy of the crypto industry.
With the growing intense scrutiny of the crypto ETFs and related financial products, it remains to be seen whether Diem’s decision to relocate back to the United States will be beneficial.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.
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