HomeCryptoStable CoinDiem ready for US launch with Silvergate Bank

Diem ready for US launch with Silvergate Bank

Diem is moving to the US thanks to a partnership with Silvergate Bank, which will launch the Diem USD Stablecoin.

The official announcement came directly from the Diem Association, the organization working on the creation of the “Facebook currency”, formerly Libra. 

This is a strategic move for Diem, which will thus debut its pilot project in the United States as a stablecoin pegged to the US dollar, backed by one of the system’s most trusted banks. In practice, Diem will move the core of its operations from Switzerland to the US, which will allow it to no longer require a licence from the Swiss FINMA. 

Silvergate will hold Diem’s dollar reserves. Diem Network US will release the Diem Payment Network, a blockchain-based payment system that will allow for the real-time transfer of Diem between network participants. 

It is clear that Diem intends to give priority to the US. That’s why with Silvergate, which is also a member of the Federal Reserve, Diem Network US will register as a financial service with the US Department of the Treasury’s Financial Crimes Enforcement Network. 

The choice of launching in the US, in the plans of the Diem Association, is also intended to be a stimulus and contribution to the evolution of digital currency regulation in the US. The time spent interacting with FINMA and other industry authorities has made Diem somewhat more aware of the regulatory parameters.

Diem, US market launch soon? 

Stuart Levey, CEO of Diem, said:

“Silvergate is a leader in financial innovation and an ideal partner for Diem as we move forward with a blockchain-based payment system that protects consumers and enhances the integrity of the financial system,” said Stuart Levey, chief executive officer of Diem. “We are committed to a payment system that is safe for consumers and businesses, makes payments faster and cheaper, and takes advantage of blockchain technology to bring the benefits of the financial system to more people around the world. We look forward to working with Silvergate to realize this shared vision”.

Alan Lane, CEO of Silvergate added:

“We believe in the future of U.S. dollar backed stablecoins and their potential to transform existing payment systems,” said Alan Lane, chief executive officer of Silvergate. “We’re inspired by Diem’s technology and commitment to building a regulatory compliant payment system that offers a safe and secure way to move money. We’re excited to be at a place in the process where we can announce this product with confidence and look forward to continuing our work with Diem to bring this to market”.

At this point, it is plausible to expect that the US version of Diem will be ready to debut shortly. 

Eleonora Spagnolo
Eleonora Spagnolo
Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.