Facebook is looking for VC companies to invest in its cryptocurrency project for sums as large as $1 billion, according to a reporter from the New York Times. Apparently, the firm is designing its crypto as a stablecoin for WhatsApp using a basket of foreign currencies as collateral.

Since last year, Facebook has been working hard on a cryptocurrency project and building a blockchain division within the firm. The social network hasn’t said much on the crypto project but so far, they have hired at least thirty people to the division with the former head of Messenger and the previous President of PayPal, David Marcus being put at the Director of Engineering Blockchain.

$1 Billion

The New York Times reporter, Nataniel Popper posted a thread of tweets on 8th April with new information gathered from sources on Facebook’s blockchain project.

Update on Facebook's cryptocurrency: Sources tell me that Facebook is now looking to get VC firms to invest in the Facebook cryptocurrency project we reported on earlier this year. I hear they are targeting big sums -- as much as $1b. — Nathaniel Popper (@nathanielpopper) 8 April 2019

Even so, based on Facebook’s financial statements, the company has $10 billion in cash and cash equivalents alone so it’s safe to say they aren’t tight when it comes to finances. Popper speculates this because one of the blockchain’s appealing properties is decentralisation, then acquiring outside investors could help in presenting “the project as more decentralized and less controlled by Facebook.”

One source has purportedly revealed to the reporter that the firm is raising funds in order to collateralise a stablecoin.

Unlike other stablecoins, Facebook’s coin would be backed by a collection of foreign currencies. This would mean it is more resilient to volatility, even against currency exchange rates. This kind of stablecoin could have a huge impact on the need for industries like Forex.

Finishing off, the NY Times reporter said, “It’s interesting to think one of the richest companies on earth [is] raising money.”