Diem Association (formerly known as Libra) announced that it will not register with the Swiss regulator FINMA and plans to return to US jurisdiction.
In addition, the announcement said that Diem will register with the Financial Crimes Enforcement Network (FinCEN) and will partner with Silvergate to launch a stablecoin pegged to the US dollar. Silvergate CEO Alan Lane commented:
“We believe in the future of USD pegged stablecoins and their ability to transform existing payment systems. We are delighted with Diem’s technology and their commitment to creating a payment system that will provide a secure way to move funds while meeting regulatory requirements. ”
It is not yet known where exactly Diem’s new headquarters will be opened. According to CNBC, the office will open in Washington. As a reminder, Silvergate is based in California. Diem CEO Stuart Levey stressed:
“Silvergate is a leader in financial innovation and the ideal partner for Diem to develop a blockchain payment system that will protect consumer interests and increase the penetration of financial services. We are working on a payment system that will be convenient for buyers and sellers, will make payments faster and cheaper, and the blockchain will allow more people to take advantage of these benefits. ”
Earlier it was reported that Diem can act as a supplier of infrastructure solutions for the issuance of state digital currencies.
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