Facebook’s stablecoin project, which is now something of an open secret, seems to be drawing nearer. Last week, major news sources revealed that Facebook has been seeking massive investments from venture capital firms. This is a major milestone for the project, and it suggests that a finished product is coming together.
Facebook Seeks $1 Billion
Details about Facebook’s investment goals emerged on Monday. That’s when Nathaniel Popper of the New York Times tweeted that Facebook is seeking $1 billion of capital from its investors. Popper added that external funding sources could allow Facebook’s stablecoin to be perceived as a more decentralized project.
The funding could also serve a concrete function. According to Popper’s contacts, these investments will likely be used to back Facebook’s fiat-pegged stablecoin. In other words, these funds may act as collateral. Popper also says that Facebook’s stablecoin may be pegged to a basket of foreign currencies held in bank accounts.
Tim Draper Is Involved