Facebook Diem announces US stablecoin launch
Facebook’s stablecoin project Diem has announced it is to launch a U.S. dollar pegged stablecoin, in the latest paring back of its international ambitions.
The project, formerly known as Libra, had been envisaging a worldwide roll-out for its stablecoin, which it had planned would be pegged to a weighted basket of international currencies. However, run-ins with regulators worldwide have resulted in several significant changes of direction in recent months, with the recent announcement the culmination of its reshaped ambitions ahead of launch.
The Diem Association, which runs the project, said it was moving its headquarters from Switzerland to the U.S., and would be withdrawing its application for a payment system license with the Swiss financial authorities.
Diem is now preparing to register as a money services business with the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury.
A pilot launch of the stablecoin is being planned in connection with California’s Silvergate Bank, though Diem has yet to confirm when the rollout will take place.
“We are committed to a payment system that is safe for consumers and businesses, makes payments faster and cheaper,” according to Diem.
The Swiss Financial Market Supervisory Authority issued its own statement confirming Diem’s intentions to revoke its Swiss license application.
“Diem is planning to launch the payment system from the USA in a first phase because initially the project will focus on the USA as its target market.”
Plans for Facebook’s stablecoin, or Libra as it was then, were unveiled in June 2019, part of the company’s strategic ambition to expand into the global payments sector.
It had been hoped that Libra would allow for transactions between consumers, and consumers to businesses, as a form of digital payment native to the Facebook ecosystem.
The revised USD-only stablecoin strategy will now see Diem turn its focus to its domestic market in attempting to establish its foothold in the space.
See also: CoinGeek Live panel, The Future of Banking, Financial Products & Blockchain
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.
Subscribe to read
Become an FT subscriber to read:
Leverage our market expertise
Expert insights, analysis and smart data help you cut through the noise to spot trends, risks and opportunities.
Join over 300,000 Finance professionals who already subscribe to the FT.
Stable Coin Developer X8 AG Planning to Have Its Common Shares Listed on North American & European Stock Exchanges
FRIBOURG, Switzerland, May 03, 2021 (GLOBE NEWSWIRE) – X8 AG. (X8) in preparation for the launch of its crypto X8currency stable coin, X8 is planning to have their common shares apply for listing on the Canadian Securities Exchange (CSE) with cross listings planned for the Open Market Segment of the Frankfurt Stock Exchange (FSE) in Germany and the Over the Counter Market (OTC) in the USA.
X8 AG has selected Listing Partners Sarl, as exclusive financial advisors in connection with the listings.
Listing Partners will be advisors and underwriters to X8 in a contemplated pre-listing offering of common shares through syndication of the issue to its underwriting group. In addition, as part of the Listing Partners group’s international affiliations, Antevorta Capital Partners Ltd. has been engaged to provide listing services to assist X8 with the listing process on the CSE, FSE and the OTC.
As part of the listing process, X8 is required to have prepared a non-offering prospectus for submission to the securities regulators for review and approval. Should the prospectus clear the approval process an application to list the X8 common shares on the CSE will be submitted for listing approval. Once the CSE listing is granted, submission of application to cross list on the FSE and OTC is planned for.
Gregor Koželj, CEO of X8 said today: “Currently, there are no other stable coin projects listed on a regulated stock exchange. We believe this exclusive position will boost X8’s visibility to the forefront along with gaining significant recognition and access to the capital markets.” He added “Simultaneously X8 AG is applying to have the X8currency stable coin authorized by the Swiss Financial Regulator, FINMA”.
The public listing of X8 AG is expected to allow capital market investors the rare opportunity to invest directly into a stable coin development project that management believes could have a global long-term vision. The X8currency stable coin work in progress is a value preservation digital currency payment instrument that is expected to challenge the established tokenized payment instruments with a cutting edge fintech of its own.
About X8 AG
Established in 2018 and headquartered in Switzerland, X8 AG intends to provide global digital cross-border payment instrument solutions that are cost-efficient and reliable. The company successfully launched its Initial Coin Offering of the X8X utility token. Currently, X8 is preparing to launch its X8currency stable coin as a digital currency by way of its application to FINMA which upon approval would award X8 to move forward with its market operations under a regulatory Sandbox regime and to further apply for a Fintech license (banking license light) as a result. The Regulatory Sandbox regime allows Swiss companies to accept deposits of up to 1 million CHF as a stable coin issuer, while the Swiss Fintech license would allow the company to accept deposits of up to 100 million CHF as a bank, which such deposits could be in the form of the X8currency and assets backing the stable coin units.
Visit: www.X8AG.io
About Listing Partners Sarl and the Listing Partners Ltd group of Companies.
Listing Partners is an international, boutique investment firm operating within the capital markets ecosystem. Their focus is on creating and managing the going public plan for companies by working with top management for successful listing and financing. Antevorta Capital Partners Ltd. is a member of the Listing Partners Group of Companies. It has been successfully assisting small and medium-sized companies in the listing process and raising funds since 1998. Their experience and know-how lead their clients through every aspect of going public, primarily on the Canadian Stock Exchange, which often results in cross listing opportunities in other international markets.
For Investor information contact: info@listingpartners.lu
For More Information about X8 contact: Gregor Koželj, ceo@x8ag.io
Disclaimer
All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. X8 AG is under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.