The stablecoin project spearheaded by Meta—formerly known as Facebook—appears to be winding down for good.
The Diem Association, formerly known as Libra, is in talks to sell off its assets and return capital to investors, according to Bloomberg.
The project’s members include a few dozen of the world’s biggest tech companies and investors, including Uber, a16z, Temasek, Spotify, Coinbase and Ribbit Capital — although it’s unclear which of Diem’s members actually invested in the project.
The group has held discussions with investment bankers over how best to hawk its intellectual property, and to try to find new employment for its engineers, according to reports. The discussions are ongoing and there is no guarantee that Diem will find a buyer.
It is a muted end to a project that burst onto the scene in 2019 with a bold plan to create a new form of stablecoin destined for use within Meta’s family of apps and beyond.
Diem, then Libra, faced stern early opposition from regulators from the outset and was forced to rein in its ambitions. Instead of a stablecoin backed by a basket of global fiat currencies, the vision morphed into individual coins backed by single national currencies.
But the setbacks kept coming. In August last year, The Block reported that Meta’s crypto subsidiary Novi was planning to work with a stablecoin issuer other than Diem. A planned stablecoin partnership with crypto-friendly Silvergate Bank also drew regulatory opposition.
Meta’s crypto lead David Marcus—who is a co-founder of Diem—resigned from the social media company in November.