October 19, 2021

Coinbase will help Facebook test Novi digital wallet

Coinbase will help Facebook test Novi digital wallet

Facebook chose Coinbase as a custodial partner to pilot test its digital wallet Novi. The largest U.S. bitcoin exchange announced this in a blog post.

As part of the pilot, Coinbase's custodial division will secure Novi users' funds with its own cold storage and private key management service.

Test participants will be able to purchase through a Pax Dollar Crypto Wallet (USDP) account and use Stablecoin for transfers between themselves.

User funds will be held by the Coinbase Custody trust and will be subject to a $320 million insurance program, the company said.

The head of Facebook's payment division, David Marcus, specified that a "small pilot" will take place in two countries - the United States and Guatemala. During the project, users will be able to "send and receive money instantly, securely and without fees," he added.

We will test key features and our operational capabilities in customer service and compliance. It will also hopefully demonstrate a new use case for Stablecoin - as a payment instrument, Marcus explained.

According to him, Facebook has not given up on supporting its own digital coin, Diem. Stablecoin will be launched as soon as it is approved by regulators, Markus stressed.

Recall that in August he announced that Novi was ready to launch.

At the same time, the media learned that the wallet operator is in talks with USD Coin (USDC) and USDP (then Paxos Standard (PAX)) stabelcoin issuers.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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