Source: Meta Reuters
On May 8, 2025, the U.S. Senate failed to pass the GENIUS Act, and the controversy caused by the clause prohibiting technology giants from issuing their own stablecoins just provided a delicate policy window for Meta to restart the cryptocurrency project.
Senator Bill Hagerty (R-Tenn.), the main sponsor of the GENIUS Act
On the same day, Fortune magazine and other media disclosed that Meta is negotiating with a number of cryptocurrency companies to introduce stablecoin payments, focusing on exploring cross-border small-amount settlement scenarios on the Instagram platform. This marks that Meta is returning to the cryptocurrency field with a more pragmatic strategy after the setbacks of the Libra/Diem project.
Meta CEO Zuckerberg
Meta's restart this time is not a simple comeback, but a strategic adjustment based on the market environment and regulatory pressure.
Libra (later renamed Diem), launched in 2019, attempted to create a global stablecoin pegged to a basket of currencies, but because of concerns about monetary sovereignty and financial stability in various countries, it eventually sold its assets to Silvergate Bank in 2022.
Today, Meta has chosen stablecoin payment applications as its entry point, focusing on exploring cross-border payments and creator economic scenarios, with more focused goals and controllable risks.
This shift is closely related to the increasing maturity of the cryptocurrency industry.
In 2025, the stablecoin market size has reached US$193 billion, with a transaction volume of nearly US$27.1 trillion, becoming a key bridge connecting traditional finance and the crypto field.
Meta obviously hopes to take advantage of this trend to integrate stablecoins into the payment ecosystem of its social platforms (such as Instagram), reduce cross-border transfer costs and improve the efficiency of creator income settlement.
Meta's initial exploration focuses on cross-border payments for Instagram creators.
Currently, creators have to pay high fees (usually 3%-5%) to receive overseas income through traditional wire transfers, while stablecoins can reduce fees to less than 1%. This cost advantage may attract more creators to join the Meta platform and enhance the competitiveness of its content ecology.
Although Meta has not disclosed the specific technical details of the new project, analysts believe that it may adopt a centralized stablecoin model, that is, 1:1 anchored to the US dollar, and reserve assets are managed by third-party institutions.
This is similar to Diem's later strategy, but it emphasizes compliance.
In addition, Meta may cooperate with existing blockchains (such as Aptos or Sui) instead of building its own underlying layer to speed up implementation.
Aptos was a public chain founded by members of the Diem team. It uses the Move language developed by Meta and has high technical compatibility.
The joining of former Plaid executive Ginger Baker is a key signal.
Plaid is a leading financial data platform in the United States, focusing on bank account connections and payment compliance, and Baker's experience in the Stellar Development Foundation (Stellar is a well-known blockchain in the field of cross-border payments) will help Meta build a payment infrastructure that meets regulatory requirements. This shows that Meta is more focused on cooperation with regulators rather than confrontation this time.
The US Senate failed to pass the GENIUS Act on May 8, 2025, which contained provisions prohibiting technology giants such as Amazon and Meta from issuing their own stablecoins, reflecting legislators' concerns about market monopoly and data abuse.
Although the bill suspension has bought time for Meta, future regulatory uncertainty remains. For example, Republican Congressman Josh Hawley and others believe that large technology companies holding the right to issue stablecoins may lead to market monopoly and data abuse.
The cross-border payment characteristics of stablecoins make them subject to regulatory scrutiny in multiple countries.
The EU Crypto-Asset Market Regulation (MiCA) requires stablecoin issuers to establish strict anti-money laundering (AML) and counter-terrorist financing (CFT) mechanisms and regularly disclose reserve audit reports. Meta needs to coordinate compliance standards between different jurisdictions, which may delay project progress.
In addition, Meta's past privacy disputes (such as the Cambridge Analytica incident) have made it face additional scrutiny when launching financial services, and regulators may require it to establish a stricter isolation mechanism between the use of user data and the security of financial transactions.
If Meta integrates stablecoin payments, it needs to solve the compliance issues of user data and financial transactions.
The EU General Data Protection Regulation (GDPR) requires AI systems to conduct data audits, and the cost of a single compliance review exceeds $100,000, which is an unbearable burden for individual developers, but super groups can effectively deal with policy risks with their global legal teams and compliance systems.
Meta's entry may accelerate the mainstreaming of stablecoins.
If Instagram successfully integrates stablecoin payments, it is expected that hundreds of millions of users will be exposed to cryptocurrencies, driving the circulation of mainstream stablecoins such as USDC and USDT.
At the same time, this may also stimulate other technology companies (such as Amazon and Google) to follow up, forming a competitive landscape of "tech giants + stablecoins". For example, Mastercard has cooperated with Circle and Paxos to explore the application of stablecoins in payment networks.
Currently, global creators have to bear high fees when receiving payments through platforms such as PayPal and Stripe, while stablecoins can reduce costs by more than 70%. This may attract more creators to join the Meta platform and enhance the competitiveness of its content ecosystem.
The low-cost cross-border payment characteristics of stablecoins may challenge the market position of traditional payment giants such as Visa and Mastercard. If Meta can integrate WhatsApp's global users (over 2 billion), it may form a new infrastructure in the field of cross-border payments.
Meta may first carry out small-scale pilots in some countries (such as India and Brazil) to verify the feasibility of stablecoins in cross-border payments and the creator economy.
At the same time, it may cooperate with banks and payment institutions to establish compliant deposit and withdrawal channels, such as issuing stablecoins through Circle or Paxos.
If the United States introduces a clear regulatory framework for stablecoins in the next step (such as a new proposal similar to the GENIUS Act), Meta may accelerate the implementation of the project; conversely, it may turn to regions with less compliance pressure (such as Southeast Asia) to expand its business.
In addition, Meta may explore combining stablecoins with AI, such as automatically allocating creators' income or achieving dynamic pricing through smart contracts.
Stablecoins may become the core transaction medium of the Meta metaverse (such as Horizon Worlds). Users can use stablecoins to purchase virtual goods, participate in virtual activities, and even earn income through decentralized finance (DeFi). This is highly consistent with Meta's strategy of building a "closed loop of the digital economy."
Meta's restart of the cryptocurrency project is not only a response to market trends, but also a key step in its transformation from a "social giant" to a "digital economic infrastructure provider".
Despite regulatory uncertainties and technical challenges, its huge user base and payment scenario advantages still make it an indispensable player in the stablecoin field.
In the future, whether Meta's cryptocurrency road will be successful will depend on its ability to bargain with regulators, its ability to implement technology, and the synergy of ecological partners.
This dynamic deserves continued attention because it may reshape the global payment landscape and the future form of the creator economy.
Appendix: Explanation of key terms
Stablecoin
A cryptocurrency pegged to a fiat currency or other assets that aims to reduce price volatility, such as USDC and USDT.
Compliance review
Check whether the enterprise or project complies with laws and regulations to ensure that its operation is legal.
Cross-border payment
The transfer of funds between different countries or regions usually involves exchange rate conversion and handling fees.
Metaverse
A digital world that integrates virtual and real, where users can socialize, trade, and entertain.
DeFi (decentralized finance)
Financial services based on blockchain technology, such as lending and trading, do not require traditional financial institutions as intermediaries.
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