Facebook’s crypto wallet Novi is inching forward with a “small pilot” in the U.S. and Guatemala, according to a tweet thread by David Marcus.
The wallet project, which gatecrashed the crypto world in 2019 alongside a digital token dubbed Libra (now Diem), represents one of Facebook’s attempts to lean into the fast-growing crypto market as well as the market for payments and remittances.
As uncertainty hangs over Diem, Novi moved ahead with Pax Dollar for the pilot. The Block first reported that the project was weighing such a deal in August.
Still, Marcus said that Novi’s “support for Diem hasn’t changed and we intend to launch Novi with Diem once it receives regulatory approval and goes live.”
“Beyond the pilot, our business model is clear,” Marcus added.
“We’re a challenger in payments. We’ll offer free person-to-person payments using Novi. Once we have a solid customer base, we’ll offer cheaper merchant payments and make a profit on merchant services,” he said.
Meanwhile, Novi is also working with Coinbase. Pilot users’ funds will be held by Coinbase’s trust company as its custody provider, the firm said.