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Silvergate Keeps Its Stablecoin Dream Alive After Diem Purchase

  • Crypto-focused bank plans to pilot its stablecoin this year
  • CEO is also considering a bank consortium to use the token
Crypto Currency Diem
Photographer: Thomas Trutschel/Photothek/Getty Images

Silvergate Capital Corp. plans to use the technology it acquired from the failed Facebook-backed digital-asset project known as Diem to underpin the crypto-focused bank’s own stablecoin payment service this year. 

Chief Executive Officer Alan Lane is optimistic that former Diem Association members such as Facebook parent Meta Platforms Inc. and Uber Technologies Inc. will eventually use the proposed dollar-based cryptocurrency -- which won’t be named Diem. Silvergate doesn’t have any agreements with former association members, which also include Lyft Inc., Spotify Technology SA and Coinbase Global Inc.