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Facebook Launches Digital Wallet Using Outside Crypto Stablecoin

Oct. 19, 2021, 8:24 PM

Facebook Inc. is starting a pilot program for sending remittances using its cryptocurrency digital wallet that will be run through a rival stablecoin rather than the one developed by the social media company that had become a lightning rod for U.S. regulators.

Instead of its Diem token, Facebook will utilize Paxos Trust Co.’s USDP stablecoin to allow wallet users from parts of the U.S. and Guatemala to conduct transactions. Coinbase Global Inc., will safeguard the funds, David Marcus, head of Facebook’s Novi wallet, said in a blog post Tuesday.

Facebook’s ambitions for Diem have been scaled back over the ...