Facebook Engages Coinbase and Winklevoss’ Gemini As It Prepares To Launch Its “GlobalCoin”
Facebook has reportedly been talking to two of United States’ major cryptocurrency exchanges with an eye on eventually issuing its own cryptocurrency.
In a report that cites two people close to the project, the Financial Times (FT) has said that Facebook held the talks in relation to its crypto dubbed the “Globalcoin” project.
According to FT, Facebook has been engaging U.S.-based crypto exchanges Coinbase and Gemini about the project. Notably, Gemini is owned by the Winklevoss twins, who famously won a lawsuit against Facebook chief executive Mark Zuckerberg.
But it appears Facebook’s dealings with the crypto exchange are driven by the fact that Gemini offers the regulated environment the social network company wants in place before it launches its crypto.
The Financial Times also quotes the anonymous sources as saying that Mark Zuckerberg’s firm has held multiple negotiations with several other crypto-related businesses. The key point in all these efforts, sources say, is to ensure that Facebook’s widely talked about but “secret” stablecoin gets the necessary liquidity.
The firm also wants the U.S. dollar-pegged coin to be tradable and secure.
That explains the reason Facebook has also reportedly approached two of Chicago’s leading high-frequency trading platforms- DRW and Jump.
According to FT, all firms said to have been a party to the talks with Facebook declined requests for comment, while the publication also notes that Facebook demanded that the news channel sign non-disclosure agreements before proceeding.
A report published by the BBC also mentioned that Facebook is looking to launch its crypto next year and that it would be designed for payments. However, sources say that “Globalcoin” will be much more than just tailored for payments.
Reports that Facebook was developing a cryptocurrency have in the recent past indicated that the social media giant aims at integrating its major apps- the popular WhatsApp, Messenger, and Instagram.
And as Facebook moves ahead with plans for its own crypto, FT quotes industry experts as saying that the project’s biggest hurdle will be regulation.
But the platform appears to be getting itself ready for the launch, as was seen on May 2 when Facebook managed to register a new fintech company called Libra Networks LLC.
The Geneva-based firm is apparently going to offer financial and emerging technology services, which will include payments, blockchain financing, big data, and identity management among others.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.