Facebook Chooses Coinbase as its Custody Partner for its Pilot of Novi

Source: blog.coinbase.com

Facebook is making headlines with its new cryptocurrency wallet! The social media giant has partnered with Coinbase to create a digital wallet-Novi. The wallet allows you to access all your funds in one place.

Coinbase’s new custody arm will ensure that funds in Novi are secure when users sign up for the pilot program. Currently, the program is available in America and Guatemala. Through Novi, they can transfer money abroad instantly with no fees.

Coinbase Custody is a qualified custodian that stores private keys for managing $180 billion of crypto assets.

Novi Users to Transact Paxos Dollar

Besides, the Novi initiative will see users able to transact Paxos dollar or USDP. A stablecoin created in 2018, whose value is like US$.

CoinMarketCap ranked this new form of cryptocurrency 100th out of 75 listings. Furthermore, its valuation is sitting below $946 million USDT—ranking fifth amongst all other tethered currencies on offer today.

David Marcus, head of Novi Bank, chose USDP because the US dollar fully backs it. Besides, you can withdraw it in local currency. “This means that people have more options than ever before for managing their money with us.” Said, David.

Novi is integrating with Diem, a Facebook blockchain-based payment system. The integration will be pending regulatory approval, but it should happen soon. “The goal of Novi has been and always will be to be interoperable,” Marcus added. “Imagine if you couldn’t send an email from a Gmail address to a Yahoo address.”

The Latin words “Novus” for ‘new’ and via,’ which means the way in English, inspire this name. Novi will be an app like WhatsApp or Instagram that sends money by messaging it through your phone. Thus, no need for banks.

Facebook has been working on it since 2019 when it was originally called Calibra. The name is likely to highlight Facebook’s digital currency libra.

In recent months, stablecoins have been under scrutiny for “misleading claims.” to having enough U.S dollar reserves backing every token.