Digital currency group Diem Association, formerly known as Facebook Inc (FB.O)‘s Libra project, plans to launch a U.S. dollar stablecoin as it scales back its global ambitions to focus on the United States, the group said on Wednesday.
The association, which comprises 26 financial firms and non-profits, said it was relocating its main operations from Switzerland to the United States and withdrawing its payment system license application with the Swiss financial regulator.
Diem Networks U.S., a unit of the Deim Association, will run a blockchain-based payment system that allows real-time transfer of Diem stablecoins and will register as a money services business with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network, the group said.
Stablecoins are digital currencies pegged to a fiat currency. California-based Silvergate Bank will issue the Diem USD stablecoin and manage the Diem USD reserve. Diem said it would launch a pilot of the stablecoin, but it did not say when.
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