Silvergate confirmed the acquisition of intellectual property and other technology assets relevant to running a blockchain-based payment network from Facebook-affiliated Diem Group in February of last year.
Faced with unrelenting political and regulatory pressure, Facebook abandoned the digital currency initiative in 2021. Silvergate was originally chosen by Facebook to issue the USD stablecoin. The Federal Reserve, on the other hand, threatened to ice Silvergate, thereby killing Meta’s ambitions.
Silvergate purchased the software assets and intended to launch the currency late last year. The company’s spending base has been’recalibrated’ as a result of market instability following the collapse of FTX.
This includes the layoff of 200 employees at a total cost of $12 million in severance payments, as well as a $196 million impairment charge connected to the Diem buyout.