Exciting Developments in the Diem Network

The Diem Association is on the brink of launching a significant technical upgrade aimed at broadening its payment network’s reach to more financial institutions. In an exciting announcement made this week, crypto security expert Fireblocks and First Digital Asset Group, a key Diem payment provider, shared their collaboration on a secure wallet and infrastructure that will facilitate transactions on the Diem network.

What is the Diem Network?

Initially branded as the Libra Association, the Diem network was rebranded in December 2020, distancing itself from any negative associations tied to Facebook. Founded in 2017, First Digital Asset Group plays a crucial role in empowering merchants and institutions to process both Diem and stablecoin payments, making it a versatile option for payment solutions.

Bridging the Gap for Financial Institutions

To join this financial revolution, institutions must qualify as a Virtual Asset Service Provider (VASP). According to the Financial Action Task Force (FATF), a VASP is any business involved in the exchange, transfer, or safekeeping of virtual assets. With this in mind, Diem is laying the groundwork for onboarding eligible clients in a systematic and organized manner.

The Power of Partnership: Fireblocks and First Digital Asset Group

The strategic alliance between Fireblocks and First Digital Asset Group is poised to expedite the adoption of Diem payments. Michael Shaulov, CEO of Fireblocks, stated that they aim to ensure that any financial institution capable of connecting to the network can do so with ease. Partnering with experts like Fireblocks allows the Diem Association to eliminate potential roadblocks to adoption, paving the way for a smoother integration process.

“As custodians, wallets, exchanges, PSPs, and other VASPs prepare for the Diem network, we’re excited to be working with Fireblocks to deliver everything a VASP needs.” – Ran Goldi, CEO of First Digital Asset Group

Looking Ahead: The Future of Diem

While the Diem network anticipates going live later this year, a specific launch date remains unconfirmed. The organization is currently awaiting regulatory approval from the Swiss Financial Market Supervisory Organization. As of February, it appears this wait continues, leaving eager enthusiasts on the edge of their seats.

Watch this space as Diem aims to make waves in the payments industry, providing efficient, secure, and innovative solutions that could redefine how we handle virtual assets!