The digital currency project, Diem, withdraws its FINMA application and moves its operations to the USA
Tuesday, 25 May, 2021
The Facebook-backed digital currency project Diem decided to withdraw its FINMA application for a payment license in Switzerland and move its operations to the USA. The company, which is headquartered in Geneva, was in the advanced stage of license application, but the board decided to focus on the US market, and move to Washington, D.C. Diem’s aim is to launch numerous stablecoins backed by different currencies, and they are set to start with a U.S. dollar-backed stablecoin. Issuing Diem USD will be possible thanks to the partnership with the crypto-friendly bank Silvergate, which will manage its dollar reserve. Interestingly, Diem’s stablecoins will be available to a limited number of participants, Facebook included.