Facebook Picks Coinbase as Custody Partner of New Digital Wallet Novi

Facebook is the largest social media network in the world. The company is keen to retain its position as a global tech giant and keep finding new ways of innovating. These days Facebook officials have been taking a keen interest in the world of cryptocurrencies and stablecoins. Last year, a new stablecoin project launched by Facebook under the banner Libra received a lot of regulatory pushback.

However, Facebook management has since changed its strategy and decided to keep moving forward with its digital coin debut. Last week, Facebook management successfully introduced its first-ever digital currency wallet called Novi. The digital wallet aims to allow people and businesses in the United States and Guatemala to send, store, and receive digital tokens. Facebook has partnered with Coinbase to make this service possible.

The first-ever digital wallet Novi is now available and lives in the better part of the United States. However, Facebook management has made many changes in their crypto industry debut plans since last year. The novel wallet that is also associated with the social media accounts of the users is not yet associated with the new stablecoin project called Diem.

Novi Wallet will Support Paxos Dollar

For the time being, FB has chosen another stablecoin project called Paxos Dollar or USDP. As per the official news, the management claims that the USDP project has been ranked as the 100th top token in the cryptocurrency market by CoinMarketCap. The main cause for choosing Paxos token is that it has been operating in the market for three years without any records of technical or financial issues.

Facebook has pointed out that there are other stablecoin projects in the market, like the USDC token that is ranked as the 10th largest token by market cap. However, the USDC token has been facing some issues, and the USDP stablecoin has been verified to have been backed by US Dollar for every unit. There is also some other financial regulatory compliance that made this project an ideal match for Novi wallet.

FB also clarified that after the testing phase, the Novi wallet is going to be re-programmed to be attached with the Diem stablecoin. Coinbase stocks have gone up by 2% since the launch of the new wallet last week. However, several regulators have expressed severe reservations about the use of stablecoins by Facebook for internal business and payments.