Facebook is looking for VCs to pour $1 billion into its new stablecoin, says Nathaniel Popper

Facebook • April 8, 2019, 6:10PM EDT

According to a tweet from The New York Times journalist Nathaniel Popper, sources said Facebook is now looking for VC firms to fund its stablecoin project, "targeting as much as $1 billion."

Popper suggests that getting outside stakeholders to back the coin would allow the project to be viewed as "more decentralized and less controlled by Facebook."

"One person I spoke with said that Facebook is talking about using the money as collateral for its cryptocurrency, pegged to a basket of foreign currencies held in bank accounts," he wrote in the thread.

Initially reported in December by Bloomberg, Facebook’s blockchain team has apparently been developing a stablecoin for payments within WhatsApp. More recently, the Times published a report showing the surprising speed of development of Facebook’s stablecoin, of which Facebook has reportedly held talks with exchanges about listing the asset.

About Author

Ryan Todd is a research analyst at The Block where he focuses on the convergence of fintech and digital assets. Previously he worked at Deutsche Bank as an equity analyst covering consumer finance and payments companies, and also spent time at ConsenSys exploring the broader Ethereum ecosystem. Ryan holds a BS in Economics and Accounting/Finance from Florida State University, and MS Finance from Vanderbilt University.