Coinbase to power Facebook’s Novi digital wallet pilot

Facebook has chosen Coinbase as custodian partner for a pilot of its Novi digital wallet. The move was announced in блоге.

As part of the pilot, Coinbase Custody will safeguard Novi users’ funds using its own cold storage and private-key management service.

Participants in the test will be able to acquire Pax Dollar (USDP) via their crypto wallet account and use the stablecoin for transfers between one another.

Funds will be held by the Coinbase Custody Trust and will fall under an insurance program totaling $320 million, the company said.

Facebook’s head of payments, David Marcus, noted that a ‘small pilot’ will run in two countries — the United States and Guatemala. During the project, users will be able to ‘send and receive money instantly, securely, and with no fees,’ he added.

“We will test the core features and our capabilities in customer service and regulatory compliance. We also hope this will demonstrate a new use case for the stablecoin — as a payment instrument,” Marcus explained.

According to him, Facebook has not abandoned support for its own digital currency Diem. The stablecoin will launch once regulators approve it, Marcus stressed.

In August, he said Novi was ready for launch.

That same period, media learned that the wallet operator in talks with stablecoin issuers USD Coin (USDC) and USDP (then — Paxos Standard (PAX)).