Facebook’s embattled cryptocurrency project is likely coming to an end

Illustration by William Joel / The Verge

More than two years after it was first announced, the Facebook-sponsored cryptocurrencies appears to be coming to an end. According to a new report, the Diem Association set up by Facebook to manage the digital token is exploring a sale after meeting resistance from regulators.

The U.S. Federal Reserve put pressure on Silvergate, the banking partner that Diem said it was partnering with last year to launch the token. I've heard that the Fed threatened Silvergate, putting the launch on ice.

Michael Crittenden, a Diem Association spokesman, told The Verge that there were some factual errors in the story.

If Diem is selling its assets, that could be a sign that the coin can't find a way forward. Regulators halted the idea of a digital token backed by a basket of currencies from around the world. The Diem token was pegged to the US dollar. That wasn't good enough.

Diem may not see the light of day. The digital wallet it built for the Diem coin was replaced by a Paxos stable coin. David Marcus left the company late last year after most of the founding team behind the project jumped ship.

carpe diem https://t.co/QTN2JzehUZ

— jack⚡️ (@jack) January 26, 2022