Nathaniel Popper, a technology reporter at The New York Times, tweeted on Monday that sources have revealed Facebook is targeting “big sums — as much as $1b” from venture capitalists to support its stablecoin effort.
The social media giant has been developing its own stablecoin for money transfers over WhatsApp, as revealed last December. Popper also tweeted that the stablecoin may be pegged to a “basket of foreign currencies held in bank accounts.”
Facebook has not commented on the tweets, nor have any of its potential investors. But, it has been planning to list its stablecoin on cryptocurrency exchanges, and started telling platforms in February that it expects to get the product out in the first half of 2019.
It may be surprising to some that Facebook is looking for so much cash, (around $44 billion allegedly) seeing that it isn’t short of money, but there is a reason behind it Popper explains that “involving outside investors in the stablecoin project could help Facebook present the cryptocurrency project as “more decentralized and less controlled” by the company.
Earlier this year, Barclays analyst Ross Sandler estimated that Facebook’s cryptocurrency project could yield anywhere from $3 billion to $19 billion in additional revenue by 2021.