Diem, the Facebook-led cryptocurrency venture initially identified Libra, has just unveiled its aims to start a stable coin with a US-focused emphasis.
Earlier this year, the company announced that it might relocate its primary functions from Switzerland, return to the US and revoke its payment network license from the regulatory bodies in Switzerland.
"Diem simplifies his plans for the distribution of [its] USD coins secure by moving its key businesses from Switzerland to the U.S.," they said.
The Swiss Financial Market Supervisory Authority subsequently announced this statement.
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Stablecoins are virtual money attached to a fiat currency, and two notable sources are Tether (USDT) and USD Coin (USDC). The USD Diem is the only provider in California, although its dollar funds are still under management.
Diem to Introduce Entirely Infrastructure Diem Networks US Parallel to Crypto Bank
The two companies formed a new wing called Diem Networks U.S. in a joint arrangement to promote Diem Stablecoin transfers within its system through the Diem Payment Network (DPN).
"Silvergate's financial breakthrough pioneer and Diem's dream ally as we advance on a blockchain-based payment infrastructure that provides customer protection and improves financial system transparency," said Stuart Levey, chief executive officer of Diem.
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"Developers are dedicated to a payment system that is secure for customers and companies, that enables transfers quicker and more affordable, and that uses blockchain technology to help more individuals around the globe from the banking sector. We believe in building on this mutual vision with Silvergate."
Diem's tactical move to America occurs when regulating cryptocurrency and blockchain technologies is fast developing.
The latest breakthrough has been welcomed by communities and states such as Miami and Wisconsin. In contrast, authorities such as Gary Gensler, a recently named SEC Chairman, criticized the sovereignty of the crypto market.
It appears to be seen whether or not Diem's decided to switch back to the United States would have some bearing with crypto-ETFs and associated financial items under close review by the SEC.
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