Facebook reportedly brings on Visa, Mastercard, and PayPal as backers of its cryptocurrency

Facebook • June 13, 2019, 6:14PM EDT

UPDATED: June 14, 2019, 9:36AM EDT

Social media giant Facebook's yet-to-launch cryptocurrency appears to have attracted three major payments companies as backers, according to a report by The Wall Street Journal.

Visa, Mastercard and PayPal are set to be backers of Facebook's cryptocurrency along with a number of other companies, including Uber. Each will invest approximately $10 million into a foundation that will govern the coin, the Journal said citing anonymous sources. That money will be used to create the backing for the coin, which will be pegged to a basket of fiat currencies.

The aforementioned governing body will be made up of a consortium of its backers, called the Libra Association, according to the Journal. More information about the cryptocurrency could be released in a white paper next Tuesday, according to reports.

Ahead of its whitepaper, Facebook posted additional blockchain jobs this week as well, with the total number of openings reaching 28.

Facebook has been rapidly moving forward with its crypto plans, reportedly hoping to launch its "GlobalCoin" by Q1 of 2020, according to a BBC report last month. Tests are slated for later this year before launch in some countries, according to the report. Some speculate the token could be used for payments in messaging apps.

Facebook also registered an LLC in Geneva focused on blockchain developments under the name "Libra Networks" in early May.

As interest in the coin rose, a study from LendEDU also reported a crypto from the social media giant could entice new users to the space, particularly due to its Marketplace feature, with which Facebook users can buy and sell items locally.

On the regulation front, the Commodity Futures Trading Commission told the Financial Times it was in early talks with Facebook about its coming stablecoin. Though no application has yet been submitted to the CFTC, according to commissioner Christopher Giancarlo, the body is trying to discern whether the crypto would fall under its jurisdiction.

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Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.