Diem’s New Payment Solution With FireBlocks & First DAG Hints at a Possible Late 2021 Launch
Diem, formerly known as the Libra Association, announces a partnership with Fireblocks and the Israeli-based First Digital Asset Group (DAG) to launch a payment solution for institutions, merchants, and payment networks. The network is expected to power Diem into the largest payment network, allowing global financial institutions to connect to the system directly.
In a joint release from a crypto custodian, Fireblocks and First DAG, the new payment solution will be launched in the coming six months. It will allow financial institutions, banks, PSPs, merchants, and e-wallets to connect and facilitate transactions on the Diem network as soon as it launches.
The Facebook-led Diem Network was unveiled back in 2019, offering a multi-currency-backed stablecoin and global payment system. However, regulators worldwide are skeptical of Diem’s role in the global monetary policies – given the 2.8 billion customers that Facebook and WhatsApp have on their platforms.
The new project will be integrated on First DAG and Fireblocks, giving access to payment stations and merchants who will use Diem. According to First CEO, Ran Goldi the payment solution will allow merchants to accept stablecoins and Diem without ever interacting with the tokens. First will deal with the payment backstage details while the merchant receives their payment in their local currency. Goldi said,
“So if you are a merchant and you are already working with a payment service provider (PSP) that we have integrated with, you will able to accept Diem without any integrations.”
Notwithstanding, the platform will be fully compliant and collect any customer information needed – similar to regulated payment services such as PayPal and Visa. The platform will follow a strict onboarding process for custodians, wallets, exchanges, PSPs, and other VASPs operating on Diem, Michael Shaulov, Fireblocks’ CEO, said.
Spotify, a member of the Diem Network, moves to integrate the Diem payment solution in the near future. In December, the popular streaming app announced a vacant position of “Payment Strategist” in the Diem and Crypto space.