Digital currency infrastructure provider Silvergate Capital Corporation has detailed a transaction with Diem Group to acquire intellectual property and other technology assets to operate a blockchain-based payment network.
“In the digital asset industry, money moves across the globe around the clock,” Silvergate CEO Alan Lane said. “Through conversations with our customers, we identified a need for a U.S. dollar-backed stablecoin that is regulated and highly scalable to further enable them to move money without barriers. As previously stated on our Q4 2021 earnings call, it remains our intention to satisfy that need by launching a stablecoin in 2022, enabled by the assets we acquired today and our existing technology.”
The Silvergate acquisition includes development, deployment, and operations infrastructure and tools to execute a blockchain-based payment network that facilitates payments for commerce and cross-border remittances.
“We are grateful to Diem and the community of engineers and developers who created this technology and have advanced it to its current evolution,” Lane said. “Silvergate is committed to continuing to foster the open-source community that supports the technology, and we believe that existing contributors will be excited about our vision going forward.”
Diem Chief Executive Officer Stuart Levey said he is proud of the members, partners, and teams who have developed the Diem Payment Network with controls to protect consumers and address financial crime.
“We have confidence in Silvergate’s ability to take Diem’s technology forward and transform the future of payments,” he said.