Harkening back to the late 2010s, Meta Platforms (NASDAQ: META) is reportedly exploring the use of cryptocurrencies in its business, specifically stablecoins. Meta had its first foray into stablecoins in June 2019 with Libra. Ultimately, due to regulatory issues and reputational risk, Libra was unsuccessful. This came despite the Libra Association having payment behemoths like Mastercard (NYSE: MA) and Visa (NYSE: V) among its founding members.
[content-module:CompanyOverview|NASDAQ: META]The Libra Association was set up to govern Libra independently of Meta. However, by October 2019, both Mastercard and Visa had left the association. Meta attempted to rebrand Libra as "Diem." This also failed as the Federal Reserve was a “key opponent to Diem launching.” Meta ultimately ended the project in early 2022.
Since 2019, the cryptocurrency industry and general views around it have evolved significantly. So, why is Meta apparently looking to enter this space again, and could it be more successful this time around? What are the potential benefits to Meta’s business? One can answer these questions by looking at how Meta’s business and the crypto space have changed. However, understanding stablecoins overall is an important prerequisite.
Stablecoin and Libra Deep Dive
Stablecoins are a type of cryptocurrency designed to maintain a relatively stable value. Their value may be pegged to the U.S. dollar or a commodity like gold, which aids in their ability to act as a medium of exchange rather than a highly volatile cryptocurrency.
In theory, a stablecoin pegged to the U.S. dollar has two benefits. First, it could create similar levels of trust among transacting parties, such as using the dollar, as both parties know its value will stay close to the currency. At the same time, the stablecoin could allow these parties to take advantage of the benefits of blockchain technology.
Meta believed Libra could reduce the friction and costs involved in making payments, creating a way to do so “as easily as you can send a photo." This aimed to increase engagement on its platforms and allow the company to take a slice of the payments market. Today, the tech giant’s stablecoin intrigue appears to be a bit different.
Stablecoins Can Aid Meta’s Fast-Growing International Business
Meta’s international business has grown by leaps and bounds since 2019. International advertising revenue is now coming in at an annual rate that is around $62 billion higher compared to Q1 2019. In Q1 2025, nearly 56% of Meta’s advertising revenue came from outside the United States and Canada.
[content-module:Forecast|NASDAQ: META]Thus, Meta’s cross-border transaction volume is likely much larger. This is because Meta pays users on its apps to create content. On Facebook alone, Meta said in October 2024 that it paid content creators $2 billion over the past year. The company is also reportedly trying to lure creators from TikTok, offering payments of $50,000 per month to post short-form videos on Instagram. Overall, many of these creators are likely not in the United States, which is the key reason for Meta’s interest in stablecoins.
Paying these creators traditionally requires wire transfers with high fees. Banks may charge these fees to both the receiver and the sender. Using stablecoins for these payments would allow Meta to avoid paying these fees, which could help increase the company’s margins in the long run. Additionally, content creators could see a reduction in the fees they pay. This would make them more likely to want to create content on Meta, increasing engagement.
There is reason to believe that Meta’s next stablecoin venture could be much more successful. Citigroup (NYSE: C) says that as of March 2025, the total value of stablecoins has grown to $230 billion, around 30x larger than five years ago. They think this figure could grow to $1.6 trillion by 2030. This highlights the growing awareness of stablecoins. Additionally, regulators worldwide, including those in the United States, are becoming more accepting of stablecoins. They are actively developing regulatory frameworks that could legitimize stablecoins as formal parts of the financial system.
Stablecoins: A Potentially Beneficial Initiative for Meta Going Forward
Overall, using stablecoins is a forward-thinking way for Meta to potentially boost margins and increase engagement on its platforms. Still, Meta has not definitively announced that it is pursuing the use of stablecoins. However, the increasing awareness, growth prospects, and improving regulatory views on stablecoins make this far from a pie-in-the-sky notion. It will be interesting to see if Meta adds legitimacy to these reports in the near future.
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