Zuckerberg out! Silvergate bank acquires meta stable currency project

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On Monday, local time, Bank of California Silvergate Capital Corporation announced that it had acquired intellectual property rights and other technical assets related to the operation of blockchain based payment networks from Diem group supported by meta, further invested in its platform and enhanced its existing stable currency infrastructure. Silvergate has unique advantages and can use this technology to further consolidate its leadership in the digital currency industry.
The assets acquired by Silvergate include the development, deployment and operation of infrastructure and tools for operating blockchain based payment networks aimed at promoting commercial payments and cross-border remittances. At present, the network is in the trial operation stage. It has been developed and built by a world-class team of engineers for two years. Its security, reliability and scalability prove its quality. The acquisition includes proprietary software elements essential to running a regulated stable currency network.
Through close cooperation with diem, Silvergate has a deep understanding of the network and is very optimistic about its potential, so that the stable currency issued by Silvergate will become the driving force of global payment in the future.
Silvergate CEO Alan Lane said “In the digital asset industry, capital flows around the world around the clock. Through conversations with customers, we found that there is a need for a dollar backed stable currency, which is regulated and highly scalable, further enabling them to transfer funds without obstacles. As we said earlier in the fourth quarter of 2021 earnings conference call, we still intend to move in 2022 The stable currency was launched in to meet this demand, which will be realized by the assets we acquired today and our existing technology. ”
Silvergate bank is a subsidiary of Silvergate, which is a chartered Federal Reserve Bank in California and has nearly 10 years of experience in building solutions in the digital currency industry. Its real-time payment platform, Silvergate exchange network, enables its customers to move funds between their own accounts and those of other Silvergate customers at any time. By integrating the assets acquired today and the Silvergate exchange network, Silvergate is one step closer to launching the next-generation global payment system, which is faster, easier to use and more cost-effective than existing solutions.
“We thank Diem and the community of engineers and developers for creating this technology and developing it to its current stage. Silvergate is committed to continuing to cultivate an open source community that supports this technology, and we believe existing contributors will be excited about our vision for the future,” Ryan said
Stuart Levey, Diem’s chief executive, said: “I am very proud of the efforts of our members, partners and teams, who tirelessly developed the Diem payment network to protect consumers and combat financial crimes with strong control. We believe Silvergate has the ability to move Diem’s technology forward and change the future of the payment industry.”
According to the terms of the asset acquisition agreement, Silvergate will issue 1221217 additional class a common shares to Diem and pay US $50 million in cash. According to Si’s closing price on January 31, 2022, the total value of the transaction is $182 million. As part of the integration of acquired assets into Silvergate’s existing technology, the conversion is expected to add about $30 million in additional costs in 2022.
Goldman Sachs acted as financial adviser to Silvergate and Holland & Knight acted as legal adviser to Silvergate. Architect partners acted as financial adviser to diem, and O’Melveny & Myers, Skadden, ARPS, slate, Meagher & flom and Fenwick & West acted as legal adviser to Diem. (golden deer)