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Facebook Taps Paxos and Coinbase for Pilot Phase of Its Novi Wallet

UTC by Tolu Ajiboye · 3 min read
Facebook Taps Paxos and Coinbase for Pilot Phase of Its Novi Wallet
Photo: Shutterstock

Users in the enlisted areas would be able to send and receive USDP in their Facebook Novi wallets, with Coinbase providing custody.

Social media giant Facebook is on the verge of launching its Novi digital wallet with help from Paxos and Coinbase. According to reports, Novi will debut in the US and Guatemala in a pilot program. Paxos, a New York-based blockchain and crypto servicing firm, will provide the Paxos Dollar (USDP) stablecoin for Novi. In addition, prominent American crypto exchange Coinbase will provide custody services for the initiative.

Facebook’s Novi North/Central American pilot program means that users in the aforementioned parts of these regions can start trading USDP. Furthermore, they can also purchase USDP through the Facebook Novi wallet, which will, in turn, deposit the funds with Coinbase. In addition to caretaking users’ monies, Coinbase will also provide a $320 million commercial crime insurance policy. It will undertake the caretaking and insurance cover obligations through its Coinbase Custody Trust Company.

Facebook Says Novi Will Revert to Diem After Regulatory Requirements

Facebook pointed out that the initial plan was for Novi to launch with Diem, its in-house blockchain-based payment system. However, the platform is yet to receive regulatory approval. Nonetheless, Facebook also made it clear that once Diem is in the clear, Novi will take to it. The social media corporation issued a statement to that regard which read:

“This does not mean our support for Diem has changed, we intend to launch Novi with Diem once it receives regulatory approval and goes live.”

Diem, known as Libra until December 2020, first came under development in May 2019. The Novi pilot, which has already gone live, is currently experiencing a slow rollout on the Apple App Store, and Google Play Store.

Coinbase Global Inc (NASDAQ: COIN) stock jumped 4.1% in premarket following the Facebook news.

About Novi

Novi is a digital wallet that allows people to send and receive funds abroad in an instant, secure, and fee-free fashion. In addition, the transaction history of users on Novi will only be visible to the individual. The money-sending platform uses ID verification and also has anti-fraud protection and refunds.

Furthermore, getting started with Novi is fairly straightforward and easy. Users use their phone numbers or a valid government-issued photo ID to create an account. Upon successfully completing that phase, they can simply add a debit card to deposit funds into the newly-created account. The Novi platform automatically converts the money to USDP using the 1-dollar-to-1-USDP exchange rate, free from markups.

After clearing this phase, users can now select a contact from their phone and enter the desired amount to send. The sender will get a preview of how much the sum is in the recipient’s local currency. In addition, they can also add a personal note and finally send it. The receiver gets the funds in their Novi account, in the absence of which the sender can invite them to create one. Finally, on the receiving end, recipients can choose how to withdraw the sent funds. They can transfer to their local bank account, withdraw in local cash currency, or keep a balance securely within the Novi platform.

Blockchain News, Cryptocurrency news, News
Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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