February 16, 2022 | When Facebook (FB) CEO Mark Zuckerberg sold his infant coin business Diem to Silvergate Capital Corp (SI), he accepted a lesson that Walmart (WMT), Alphabet (GOOG) and Apple (AAPL) have all learned over the years: banks have a federal monopoly on creating deposits and making payments. If you want to take deposits or have a hard IP address on the national payments system, namely a master account at a Federal Reserve Bank, then you got to be a bank. That is, a federally insured depository institution. Just ask Sarah Bloom Raskin. But who is Silvergate and why is this small bank from La Jolla, CA, buying FB’s stable coin business Diem?
Profile: Silvergate Capital Corp (SI)
Updated: Feb 16, 2022
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